Company registration number 08022705 (England and Wales)
GREEN DESTINATIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
GREEN DESTINATIONS LIMITED
COMPANY INFORMATION
Director
J Malik
Company number
08022705
Registered office
386 Park Road
Hockley
Birmingham
West Midlands
England
B18 5ST
Auditor
Spencer Gardner Dickins (Audit Services) Limited
3 Coventry Innovation Village
Cheetah Road
Coventry
CV1 2TL
GREEN DESTINATIONS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Notes to the financial statements
9 - 18
GREEN DESTINATIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -
The director presents the strategic report for the year ended 31 July 2024.
Review of the business
The key performance indicators that are used to manage the business are primarily turnover, gross margin and profit before tax.
The 2024 KPI’s above have declined when compared to 2023 due to the competitive market and challenging macro-economic conditions. However, given the market and economic background, the 2024 results have met management expectations. The company continues to invest in fixed assets to deliver a sustainable business for the long term and is well positioned to continue to successfully serve its customers and wider stakeholders.
Principal risks and uncertainties
The company has identified a number of business risks and uncertainties, along with policies to mitigate those risks.
Potential future legislation, regulations and actions could cause additional operational expense, the extent of which cannot be predicted. The company takes responsibility for ensuring that all relevant legislation is met.
Potential future legislation, regulations and actions could cause additional operational expense, and/or the requirement for future capital expenditure. To mitigate this risk a fleet replacement plan is in place and a constant monitoring of future market requirements is maintained.
These include equipment failure, damage or substandard service, and include changes in customer operations. The risk of oil price changes affecting the cost of sales is an uncontrollable risk for the company. The company seeks to minimise these risks by investing in environmentally advanced equipment, improvements in customer engagement with over 1,000 Google Reviews of 4.9 out of 5 stars whilst closely monitoring the legislative developments within the market. The company is motivated to deliver high quality home-to-school transport services and was selected as Finalist for Outstanding Customer Experience by the RouteOne Magazine Award.
IT systems are more vital than ever to business operations and, therefore, any vulnerability to external attacks can expose the company to financial as well as reputational losses. The company continuously implements robust IT security policies and practices to detect and prevent cyber security threats. The company regularly educates its staff about cyber risks and provides guidance on best practices for avoidance and mitigation.
J Malik
Director
24 April 2025
GREEN DESTINATIONS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
The director presents his annual report and financial statements for the year ended 31 July 2024.
Principal activities
The principal activity of the company continued to be that of provision of passenger transport services.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £5,800,308. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
J Malik
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Statement of director's responsibilities
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;
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.
GREEN DESTINATIONS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
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
J Malik
Director
24 April 2025
GREEN DESTINATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GREEN DESTINATIONS LIMITED
- 4 -
Opinion
We have audited the financial statements of Green Destinations Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of income and retained earnings, the balance sheet 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 31 July 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.
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.
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.
GREEN DESTINATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GREEN DESTINATIONS LIMITED (CONTINUED)
- 5 -
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 director's 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.
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:
Enquiring of management and those charged with governance around actual and potential litigation and claims.
Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing minutes of meetings of those charged with governance.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Performing audit work over the risk of management override of controls and risk of fraud in revenue recognition, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
GREEN DESTINATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GREEN DESTINATIONS LIMITED (CONTINUED)
- 6 -
Other matters which we are required to address
In accordance with ISA (UK) 710, paragraph 14, we would like to bring to your attention that the corresponding figures have not been subject to audit.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Demsey Slater FCCA
Senior Statutory Auditor
For and on behalf of Spencer Gardner Dickins (Audit Services) Limited
24 April 2025
Chartered Accountants
Statutory Auditor
3 Coventry Innovation Village
Cheetah Road
Coventry
CV1 2TL
GREEN DESTINATIONS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2024
- 7 -
Year
Period
ended
ended
31 July
31 July
2024
2023
Notes
£
£
Turnover
3
19,530,683
27,808,000
Cost of sales
(10,639,246)
(10,734,131)
Gross profit
8,891,437
17,073,869
Administrative expenses
(3,763,412)
(9,960,483)
Other operating income
63,011
550
Operating profit
4
5,191,036
7,113,936
Interest receivable and similar income
7
154,744
106,642
Interest payable and similar expenses
8
(88,459)
(46,591)
Profit before taxation
5,257,321
7,173,987
Tax on profit
9
(1,880,124)
(1,149,299)
Profit for the financial year
3,377,197
6,024,688
Retained earnings brought forward
8,582,162
2,676,107
Dividends
10
(5,800,308)
(118,633)
Retained earnings carried forward
6,159,051
8,582,162
The profit and loss account has been prepared on the basis that all operations are continuing operations.
GREEN DESTINATIONS LIMITED
BALANCE SHEET
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,755,807
3,516,990
Current assets
Debtors
13
5,158,069
1,927,320
Cash at bank and in hand
3,282,421
12,500,605
8,440,490
14,427,925
Creditors: amounts falling due within one year
14
(3,499,222)
(8,636,078)
Net current assets
4,941,268
5,791,847
Total assets less current liabilities
6,697,075
9,308,837
Creditors: amounts falling due after more than one year
15
(259,998)
(726,674)
Provisions for liabilities
Deferred tax liability
17
278,025
(278,025)
-
Net assets
6,159,052
8,582,163
Capital and reserves
Called up share capital
19
1
1
Profit and loss reserves
6,159,051
8,582,162
Total equity
6,159,052
8,582,163
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 24 April 2025
J Malik
Director
Company registration number 08022705 (England and Wales)
GREEN DESTINATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
1
Accounting policies
Company information
Green Destinations Limited is a private company limited by shares incorporated in England and Wales. The registered office is 386 Park Road, Hockley, Birmingham, West Midlands, England, B18 5ST.
1.1
Reporting period
To better suit seasonal cycles within the company's activities the member changed the year end from 30 April 2023 to 31 July 2023 meaning the financial statements for the comparative period represent fifteen months of trade. The year to 31 July 2024 (the current year) is a twelve month period. As a result of the periods being different in length, the comparative information may not now be wholly comparable with the information for the current year.
1.2
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Pehlwan Malik Holdings Limited. These consolidated financial statements are available from its registered office, 386 Park Road, Hockley, Birmingham, West Midlands, BS18 5ST.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.3
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.
GREEN DESTINATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 10 -
1.4
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Freehold land and buildings
Not depreciated
Plant and equipment
20% reducing balance
Fixtures and fittings
20% reducing balance
Computers
20% reducing balance
Motor vehicles
20% reducing balance
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.
1.6
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).
1.7
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.
1.8
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 balance sheet 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.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
GREEN DESTINATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 11 -
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.
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.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
GREEN DESTINATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 12 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 profit and loss account, 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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 balance sheet 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.
GREEN DESTINATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Residual value of fixed assets
The director has attributed no residual value to any of the company's assets on the basis that all vehicles are expected to be held until they are no longer fit for purposes (i.e. they are defunct).
3
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
154,744
106,642
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
30,000
Depreciation of owned tangible fixed assets
391,151
700,275
Loss on disposal of tangible fixed assets
825,568
-
Operating lease charges
30,683
35,442
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
450
151
GREEN DESTINATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
5
Employees
(Continued)
- 14 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,511,523
1,351,681
Social security costs
51,069
28,722
Pension costs
13,392
6,809
3,575,984
1,387,212
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
3,842
40,832
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
154,744
106,642
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
88,459
46,591
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,602,099
1,149,299
Deferred tax
Origination and reversal of timing differences
278,025
Total tax charge
1,880,124
1,149,299
GREEN DESTINATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
9
Taxation
(Continued)
- 15 -
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
5,257,321
7,173,987
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
1,314,330
1,793,497
Tax effect of expenses that are not deductible in determining taxable profit
(311,472)
(644,198)
Deferred tax adjustments in respect of prior years
877,266
Taxation charge for the year
1,880,124
1,149,299
10
Dividends
2024
2023
£
£
Final paid
5,800,308
118,633
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 August 2023
1,314,500
15,227
130,948
23,074
3,059,171
4,542,920
Additions
922
769,116
770,038
Disposals
(1,314,500)
(15,227)
(130,948)
(23,996)
(1,222,048)
(2,706,719)
At 31 July 2024
2,606,239
2,606,239
Depreciation and impairment
At 1 August 2023
7,847
35,666
10,175
972,242
1,025,930
Depreciation charged in the year
391,151
391,151
Eliminated in respect of disposals
(7,847)
(35,666)
(10,175)
(512,961)
(566,649)
At 31 July 2024
850,432
850,432
Carrying amount
At 31 July 2024
1,755,807
1,755,807
At 31 July 2023
1,314,500
7,380
95,282
12,899
2,086,929
3,516,990
GREEN DESTINATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 16 -
12
Fixed asset investments
2024
2023
£
£
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 August 2023
-
Additions
499,999
Transfers
(499,999)
At 31 July 2024
-
Carrying amount
At 31 July 2024
-
At 31 July 2023
-
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,060,386
99,103
Amounts owed by group undertakings
750,867
148,131
Other debtors
213,237
300
Prepayments and accrued income
133,579
1,679,786
5,158,069
1,927,320
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
683,457
585,316
Trade creditors
36,931
6,014,311
Corporation tax
1,249,927
939,742
Other taxation and social security
1,307,804
1,093,187
Other creditors
23,529
2,196
Accruals and deferred income
197,574
1,326
3,499,222
8,636,078
GREEN DESTINATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 17 -
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
259,998
726,674
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
683,457
585,316
In two to five years
259,998
726,674
943,455
1,311,990
Finance lease payments represent rentals payable by the company for motor vehicles. The average lease term is three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
17
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
278,442
-
Retirement benefit obligations
(417)
-
278,025
-
2024
Movements in the year:
£
Liability at 1 August 2023
-
Charge to profit or loss
278,025
Liability at 31 July 2024
278,025
GREEN DESTINATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 18 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
13,392
6,809
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.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
20
Related party transactions
The director has taken advantage of disclosure exemptions within FRS102 meaning that transactions with companies within the group have not been disclosed. true
21
Directors' transactions
Loans to directors are interest free and repayable on demand.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Loan to director
-
(2,196)
229,611
(44,478)
182,937
(2,196)
229,611
(44,478)
182,937
22
Ultimate controlling party
Effective 2 November 2023, Pehlwan Malik Holdings Limited (a company registered with Companies House in England and Wales) was the immediate and ultimate parent company.
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