Company registration number 03677686 (England and Wales)
CITY CIRCLE UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CITY CIRCLE UK LIMITED
COMPANY INFORMATION
Directors
Mr N J Pegg
Ms N Hara
Mr K Otofuji
Company number
03677686
Registered office
4 Millington Road
Hyde Park Hayes
Hayes
Middlesex
England
UB3 4AZ
Auditor
RDP Newmans LLP
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
Business address
4 Millington Road
Hyde Park Hayes
Hayes
Middlesex
England
UB3 4AZ
CITY CIRCLE UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 25
CITY CIRCLE UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of provision of luxury coach services.

Review of the business

The Key Performance Indicators of the Company over the last two years are detailed below:

 

                     2024         2023

Turnover                    £9,556,934    £8,716,350

Gross profit %                77.81        76.14

Net profit % before tax            24.63         12.32

 

Net assets                £4,616,350    £2,830,821

 

City Circle UK Limited made a profit before tax for the year in the year ended 31 December 2024 of £2,353,711 with a 9.64% increase in revenue to £9,556,934 and a 12.05% increase in gross profit to £7,435,975. The profit after tax for the year is £1,785,529 (2023: £1,479,745).

 

The companys return to normal trading continued in 2024 and performed well with increased revenues and margins. International travel business returned to normal which was coupled with a high demand from the domestic travel market.

Principal risks and uncertainties

The directors consider that the principal risk to the business is the impact on profitability and cash flow resulting from the seasonality and volatility of the tourist market. Whilst significant progress has been made in attracting business from wider geographical markets, the company remains heavily dependent on incoming tourism hence remains subject to substantial swings in revenue between summer and winter. Progress has been made in reducing costs in the winter period by the use of seasonal employment contracts for drivers and more flexible vehicle replacement policies to match fleet resources with seasonal revenues.

 

Financial instruments

The company's principal financial instruments comprise hire purchase creditors, overdrafts and trade payables. The main purpose of these financial instruments is to raise finance for the company's operations. The company has various other financial assets such as trade receivables, cash and short-term deposits which arise directly from its operations.

 

The main risks arising from the company's financial instruments are credit risk and liquidity risk. The board reviews and agrees policies for managing each of these risks and they are summarised below.

 

Credit risk

The Company's principal financial assets are bank balances and cash and trade and other receivables. The company's credit risk is primarily attributable to its customers. This risk is mitigated through specific terms and conditions in signed contracts.

 

The amounts presented in the balance sheet are net of allowances for doubtful receivables where applicable. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

 

CITY CIRCLE UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

 

The Company has no significant concentration of credit risk, with exposure spread over a large number of well-established counterparties and customers.

 

Liquidity risk

The directors consider the principal financial risk to the Company to be cash flow, due to the seasonality of the business. Group funding in the form of short-term loans available from the ultimate parent company mitigates this risk. Additional financing for coaches is obtained through financing arrangements with financial institutions.

 

Interest rate risk

The company finances its operations through short-term loans available from the ultimate parent company and working capital. The company is subject to interest rate risks. This is mitigated by continually monitoring the rates available to the company.

On behalf of the board

Mr N J Pegg
Director
30 April 2025
CITY CIRCLE UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

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

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr N J Pegg
Ms N Hara
Mr K Otofuji
Future developments

The business traded at full operational capacity in 2024 and expects the same throughout 2025 with demand for coach hire services expected to be extremely high and with potential for demand to outstrip supply.

Fuel prices have receded considerably from their peak in 2024. Interest rate increases will impact the business in terms of financing fleet replacement and labour costs continue to rise in a very intense labour market.

Driver shortages appear to be increasing following the pattern of 2024.

The company has managed to increase both its contracted and ad hoc coach hire prices for the coming year and is confident of maintaining or improving margins. Demand for coach hire continues to be strong.

Auditor

The auditor, RDP Newmans LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

On behalf of the board
Mr N J Pegg
Director
30 April 2025
CITY CIRCLE UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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. They are 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.

CITY CIRCLE UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CITY CIRCLE UK LIMITED
- 5 -
Opinion

We have audited the financial statements of City Circle UK Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

Emphasis of matter

We draw attention to the deferred tax asset recognised in the financial statements in relation to the taxable losses being carried forward, as further explained in note 20 of the financial statements. The quantum of the deferred tax asset balance is based on the directors’ forecasts on the likely timing and projected level of future taxable profits. These forecasts are based on projections and therefore carry an element of uncertainty. In view of the significance of this uncertainty we consider that it should be drawn to you attention but our opinion is not qualified in this respect.

Material uncertainty related to going concern

We draw attention to note 1.2 in the financial statements, which indicates the letter of support provided by the ultimate parent company JTB Corp to its direct subsidiary Kuoni Travel Investments Ltd (Kuoni Reisen Beteiligungs AG) stating that JTB Corp will provide the necessary funding in a timely manner to both Kuoni Travel Investments Ltd and its subsidiaries; City Circle UK Limited is a subsidiary of JTB Europe Limited, whose immediate parent is Kuoni Travel Investments Ltd.

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

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

Our opinion is not qualified in this respect.

Other information

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

 

We have nothing to report in this regard.

CITY CIRCLE UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CITY CIRCLE UK LIMITED (CONTINUED)
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

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 directors' report.

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

CITY CIRCLE UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CITY CIRCLE UK LIMITED (CONTINUED)
- 7 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the company's 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.

Paresh Radia FCA
Senior Statutory Auditor
For and on behalf of RDP Newmans LLP
30 April 2025
Chartered Accountants
Statutory Auditor
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
CITY CIRCLE UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
9,556,934
8,716,350
Cost of sales
(2,120,959)
(2,080,079)
Gross profit
7,435,975
6,636,271
Administrative expenses
(4,531,976)
(5,106,788)
Operating profit
4
2,903,999
1,529,483
Interest receivable and similar income
8
58
427
Interest payable to group undertakings
9
(178,110)
(182,658)
Other interest payable and similar expenses
9
(372,236)
(272,987)
Profit before taxation
2,353,711
1,074,265
Tax on profit
10
(568,182)
405,480
Profit for the financial year and total comprehensive income
1,785,529
1,479,745

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

CITY CIRCLE UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
6,573,783
9,335,771
Current assets
Stocks
14
101,716
100,956
Debtors
15
2,492,374
2,359,584
Cash at bank and in hand
10,167
270,552
2,604,257
2,731,092
Creditors: amounts falling due within one year
16
(2,868,695)
(5,625,062)
Net current liabilities
(264,438)
(2,893,970)
Total assets less current liabilities
6,309,345
6,441,801
Creditors: amounts falling due after more than one year
17
(1,576,570)
(3,509,555)
Provisions for liabilities
Provisions
19
116,425
101,425
(116,425)
(101,425)
Net assets
4,616,350
2,830,821
Capital and reserves
Called up share capital
22
450,000
450,000
Profit and loss reserves
4,166,350
2,380,821
Total equity
4,616,350
2,830,821

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

The financial statements were approved by the board of directors and authorised for issue on 30 April 2025 and are signed on its behalf by:
Mr N J Pegg
Director
Company registration number 03677686 (England and Wales)
CITY CIRCLE UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
450,000
901,076
1,351,076
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,479,745
1,479,745
Balance at 31 December 2023
450,000
2,380,821
2,830,821
Year ended 31 December 2024:
Profit and total comprehensive income
-
1,785,529
1,785,529
Balance at 31 December 2024
450,000
4,166,350
4,616,350
CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information

City Circle UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4 Millington Road, Hyde Park Hayes, Hayes, Middlesex, England, UB3 4AZ.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include motor vehicles at fair value. 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:

 

 

The ultimate parent company and controlling party is JTB Corp., a company incorporated in Japan. The Company's immediate parent is JTB Europe Limited, a company incorporated in the United Kingdom. The largest undertaking for which group financial statements are prepared, which includes this company, is JTB Corp. Consolidated financial statements for that company are available from the registered address Higashi-Shinagawa 2-3-11, Shinagawa­ ku, Tokyo 140-8602, Japan. The smallest undertaking for which group financial statements are prepared which includes this company is Kuoni Travel Investments Ltd, available from Elias-Canetti-Strasse, 2, Zürich, 8050, Switzerland.

CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern

The financial statements have been prepared on the going concern basis, which the directors believe to be appropriate as the ultimate parent company JTB Corp has provided it's direct subsidiary, Kuoni Travel Investments Ltd (Kuoni Reisen Beteiligungs AG) with a letter of support stating that it will continue to commit and support any cash funding required as necessary to both Kuoni Travel Investments Ltd and all of the company's subsidiaries, to ensure that they are able to meet their obligations and continue operations. City Circle UK Limited is the subsidiary of JTB Europe Limited, whose immediate parent company is Kuoni Travel Investments Ltd.true

 

The Company holds cash balances to meet its day-to-day working capital requirements. The current economic conditions create uncertainty particularly over (a) the level of demand from tourists travelling to the United Kingdom and (b) the exchange rate between UK pound sterling and Japanese Yen, which can have an adverse impact on cash available from operations. Where short-term cash flow difficulties arise, finance is available through short-term borrowings from the ultimate parent company and the Company also has an overdraft facility from which it can fund its day-to-day working capital requirements. The facility is reviewed quarterly. The Company also obtains financing for its capital expenditure on coaches through third party financial institutions.

1.3
Turnover

Turnover comprises income from coach services. All turnover arises in the United Kingdom and excludes VAT. Turnover is recognised within the accounting period in which the service is provided, with the turnover for hires covering the year-end being apportioned to the period in which the hire takes place.

 

Recharged expenses relate to expenses incurred by the coach drivers such as accommodation, meals, travel, etc. These are recharged to customers at original cost.

Other revenue comprises mainly of third-party maintenance income for vehicle repairs and some incidental transport related income.

1.4
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:

Leasehold improvements
10% per annum over 10 years
Fixtures and fittings
33% per annum over 3 years
Vehicles - Motor vehicles
20% per annum over 5 years
Vehicles - Machinery
33% per annum over 3 years
Vehicles - Other
50% per annum over 2 years

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

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -

Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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.

Basic financial assets

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

CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.

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.

CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.12
Employee benefits

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

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
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.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2
Judgements 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Deferred tax assets

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Impairment of fixed assets

Significant management judgement is required in determining the fair values of all the motor vehicles based on similar vehicles for sale in various trade magazines, seeking external advice from loan providers and manufacturers and preparation of detailed discounted cash flow models.

Useful economic life of fixed assets

Significant management judgement is required in determining the useful economic life of fixed assets. The useful economic life of all fixed assets are based on the historical usage of assets based on industry standards.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Lease dilapidations

Dilapidations costs will arise once the company has fulfilled its rent obligations in relation to its office space. The timing and amounts of the future cash flows related to dilapidations are subject to uncertainty. The estimated provision is based on the company's prior experience and understanding from similar situations. The estimation necessitates the exercise of judgement based on existing facts and circumstances, which may be subject to change.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Coach hire sales
9,094,619
8,296,538
Recharged expenses
141,136
117,508
Other revenue
321,179
302,304
9,556,934
8,716,350
CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 18 -
2024
2023
£
£
Other revenue
Interest income
58
427
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
878
(4,202)
Depreciation of owned tangible fixed assets
927,294
899,068
Impairment of owned tangible fixed assets
(323,617)
(78,500)
(Profit)/loss on disposal of tangible fixed assets
(517,670)
12,558
Operating lease charges
514,934
506,711
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
21,125
15,000
6
Employees

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

2024
2023
Number
Number
Drivers
56
57
Administration
18
18
Total
74
75

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,089,369
2,891,006
Social security costs
320,206
303,722
Pension costs
60,096
52,950
3,469,671
3,247,678
CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
338,648
343,500
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
281,648
331,500
Company pension contributions to defined contribution schemes
57,000
12,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
58
427
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
178,110
182,658
Other finance costs:
Other interest
372,236
272,987
550,346
455,645
Disclosed on the profit and loss account as follows:
Interest payable to group undertakings
178,110
182,658
Other interest payable and similar expenses
372,236
272,987
10
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
568,182
(405,480)

The corporation tax rate has increased from 19% to 25% from 1 April 2023. The effective tax rate for the year ended 31 December 2023 was 3 months at 19% and 9 months at 25%.

CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
(Continued)
- 20 -

The actual charge/(credit) 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
2,353,711
1,074,265
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
588,428
252,452
Tax effect of expenses that are not deductible in determining taxable profit
186,647
200,751
Unutilised tax losses carried forward
(349,755)
533,984
Permanent capital allowances in excess of depreciation
(425,320)
(987,187)
Deferred tax movement
568,182
(405,480)
Taxation charge/(credit) for the year
568,182
(405,480)
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment adjustments have been recognised in the statement of comprehensive income:

2024
2023
Notes
£
£
In respect of:
Vehicles - Motor vehicles
12
(323,617)
(78,500)
Recognised in:
Administrative expenses
(323,617)
(78,500)
CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
12
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Vehicles - Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
655,185
160,589
11,824,611
12,640,385
Additions
-
0
4,114
1,543,905
1,548,019
Disposals
-
0
(7,165)
(4,512,928)
(4,520,093)
At 31 December 2024
655,185
157,538
8,855,588
9,668,311
Depreciation and impairment
At 1 January 2024
384,670
150,141
2,769,803
3,304,614
Depreciation charged in the year
65,518
4,424
857,352
927,294
Reversal of past impairment
-
0
-
0
(323,617)
(323,617)
Eliminated in respect of disposals
-
0
(3,540)
(810,223)
(813,763)
At 31 December 2024
450,188
151,025
2,493,315
3,094,528
Carrying amount
At 31 December 2024
204,997
6,513
6,362,273
6,573,783
At 31 December 2023
270,515
10,448
9,054,808
9,335,771

More information on impairment movements in the year is given in note 11.

Vehicles with a net book value before impairment of £4,788,880 (2023: £6,660,353) were held under hire purchase finance. Depreciation of £732,747 (2023: £548,413) was charged during the year in respect of these assets. An impairment provision of £Nil (2023: £323,617) was recognised to reflect the fair value of the motor vehicles.

13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,260,330
531,534
Carrying amount of financial liabilities
Measured at amortised cost
3,614,206
8,987,847
14
Stocks
2024
2023
£
£
Finished goods
101,716
100,956
CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
224,752
285,387
Amounts owed by group undertakings
52,411
-
0
Other debtors
983,167
299,107
Prepayments and accrued income
252,906
227,768
1,513,236
812,262
Deferred tax asset (note 20)
187,500
151,250
1,700,736
963,512
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 20)
791,638
1,396,072
Total debtors
2,492,374
2,359,584
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
18
789,417
1,493,284
Trade creditors
345,197
452,956
Amounts owed to group undertakings
51,759
2,808,058
Taxation and social security
831,059
146,770
Other creditors
157,341
203,815
Accruals and deferred income
693,922
520,179
2,868,695
5,625,062

A fellow European group company (Travel Plaza Europe BV) operates a cash pooling arrangement under which daily bank balances are swept to a central account. At 31 December 2024 the balance receivable from Travel Plaza Europe B.V. on the pooling account and included within amounts due from group undertakings was £52,411 (2023: £2,431,411 owed to Travel Plaza Europe PV) which is receivable on demand carrying interest at EURIBOR plus 2%.

 

All other amounts owed to group undertakings are unsecured, interest free and repayable on demand.

17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
18
1,576,570
3,509,555
CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
789,417
1,493,284
In two to five years
1,576,570
2,491,928
In over five years
-
0
1,017,627
2,365,987
5,002,839

The hire purchase agreements all bear fixed rates of interest between 2.0% and 8.75% per annum. All hire purchase agreements relate to the financing of vehicles.

The amounts due in relation to hire purchase agreements are secured over the related assets.

 

19
Provisions for liabilities
2024
2023
£
£
Dilapidations provision
116,425
101,425
Movements on provisions:
Dilapidations provision
£
At 1 January 2024
101,425
Additional provisions in the year
15,000
At 31 December 2024
116,425

Dilapidations costs have been provided for in relation to office space leased by the company.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
(1,239,083)
(1,498,004)
Tax losses
2,218,221
3,045,326
979,138
1,547,322
CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
20
Deferred taxation
(Continued)
- 24 -
2024
Movements in the year:
£
Asset at 1 January 2024
(1,547,322)
Charge to profit or loss
568,184
Asset at 31 December 2024
(979,138)

The deferred tax asset set out above is expected to reverse and relates to the utilisation of tax losses against future expected profits of the same period.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,096
52,950

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. Contributions totalling £25,204 (2023: £34,710) were payable to the fund at the reporting date 31 December 2024 and are included within other creditors.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
450,000
450,000
450,000
450,000

The Company has one class of Ordinary shares which carry no right to fixed income.

23
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
420,714
406,978
Between two and five years
1,793,899
1,293,899
In over five years
808,687
1,132,161
3,023,300
2,833,038
CITY CIRCLE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
24
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
3,990,000
1,530,000
25
Related party transactions

The Company has taken advantage of the exemption available under FRS 102, Section 33.1A, not to disclose transactions with wholly owned members of the Group.

Included within other creditors is a balance of £364 (2023: £nil) due to the directors.

26
Ultimate controlling party

The ultimate parent company and controlling party is JTB Corp., a company incorporated in Japan. The Company's immediate parent is JTB Europe Limited, a company incorporated in the United Kingdom. The largest undertaking for which group financial statements are prepared, which includes this company, is JTB Corp. Consolidated financial statements for that company are available from the registered address Higashi-Shinagawa 2-3-11, Shinagawa­ ku, Tokyo 140-8602, Japan. The smallest undertaking for which group financial statements are prepared which includes this company is Kuoni Travel Investments Ltd, available from Elias-Canetti-Strasse, 2, Zürich, 8050, Switzerland.

2024-12-312024-01-01falseCCH SoftwareCCH Accounts Production 2024.100Mr N J PeggMs N HaraMr K Otofujifalsefalse036776862024-01-012024-12-3103677686bus:Director12024-01-012024-12-3103677686bus:Director22024-01-012024-12-3103677686bus:Director32024-01-012024-12-3103677686bus:RegisteredOffice2024-01-012024-12-31036776862024-12-31036776862023-01-012023-12-3103677686core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3103677686core:RetainedEarningsAccumulatedLosses2024-01-012024-12-31036776862023-12-3103677686core:LeaseholdImprovements2024-12-3103677686core:FurnitureFittings2024-12-3103677686core:MotorVehicles2024-12-3103677686core:LeaseholdImprovements2023-12-3103677686core:FurnitureFittings2023-12-3103677686core:MotorVehicles2023-12-3103677686core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3103677686core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3103677686core:Non-currentFinancialInstrumentscore:AfterOneYear2024-12-3103677686core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3103677686core:CurrentFinancialInstruments2024-12-3103677686core:CurrentFinancialInstruments2023-12-3103677686core:ShareCapital2024-12-3103677686core:ShareCapital2023-12-3103677686core:RetainedEarningsAccumulatedLosses2024-12-3103677686core:RetainedEarningsAccumulatedLosses2023-12-3103677686core:ShareCapital2022-12-3103677686core:RetainedEarningsAccumulatedLosses2022-12-3103677686core:LeaseholdImprovements2024-01-012024-12-3103677686core:FurnitureFittings2024-01-012024-12-3103677686core:MotorVehicles2024-01-012024-12-3103677686core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-01-012024-12-3103677686core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2024-01-012024-12-310367768612024-01-012024-12-310367768612023-01-012023-12-3103677686core:UKTax2024-01-012024-12-3103677686core:UKTax2023-01-012023-12-3103677686core:LeaseholdImprovements2023-12-3103677686core:FurnitureFittings2023-12-3103677686core:MotorVehicles2023-12-31036776862023-12-3103677686core:Non-currentFinancialInstruments2024-12-3103677686core:Non-currentFinancialInstruments2023-12-3103677686core:WithinOneYear2024-12-3103677686core:WithinOneYear2023-12-3103677686core:BetweenTwoFiveYears2024-12-3103677686core:BetweenTwoFiveYears2023-12-3103677686core:MoreThanFiveYears2024-12-3103677686core:MoreThanFiveYears2023-12-3103677686bus:PrivateLimitedCompanyLtd2024-01-012024-12-3103677686bus:FRS1022024-01-012024-12-3103677686bus:Audited2024-01-012024-12-3103677686bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP