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Registered number: 03307429









STEPPES TRAVEL LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

 
STEPPES TRAVEL LIMITED
 
 
COMPANY INFORMATION


Directors
S C Beeching 
R D Dikstra 
R D Kleinwort 
N A G Laing 
R A Brown 
J C Wateridge 
Ms H Rhys Williams 




Company secretary
N A G Laing



Registered number
03307429



Registered office
51 Castle Street
Cirencester

Gloucestershire

GL7 1QD




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

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA





 
STEPPES TRAVEL LIMITED
 

CONTENTS



Page
Strategic Report
1 - 4
Directors' Report
5 - 6
Independent Auditors' Report
7 - 10
Income Statement
11
Statement of Comprehensive Income
12
Statement of Financial Position
13 - 14
Statement of Changes in Equity
15 - 16
Statement of Cash Flows
17
Analysis of Net Debt
18
Notes to the Financial Statements
19 - 38


 
STEPPES TRAVEL LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

Introduction
 
The directors present their strategic report for the year ended 31 August 2024.
Section 172 (1) Statement
The information provided below is intended to explain how the directors considered the interests of the Company’s key stakeholders and the broader matters set out in section 172 (1) (a) to (f) of the Companies Act 2006 when performing their duty to promote the success of the Company under section 172 of the Companies Act 2006.

Business review
 
The Company is required by the Companies Act 2006 to set out in this report, a fair review of the business of the Company during the financial year ended 31 August 2024, the position of the Company at the end of the period and a description of the principal risks and uncertainties facing the Company. This review is prepared solely to provide additional information to assess the Company's strategies and the potential for those strategies to succeed, and the business review should not be relied upon by any other party or for any other purpose.
The Company continued to make a good recovery during FY 2024, building on the results achieved for FY 2023, with a good gross margin. 
Future developments
Post pandemic turnover has yet to fully recover but we have reorganised operations around our core team to deliver a more profitable underlying business. The tailor-made side has recovered more quickly than groups. This was to be expected. The Company will rebuild the group tour business over FY 2025 and FY 2026 introducing a broader range of specialist tours drawing on our extensive range of contacts and relationships. 

Travel regulatory bodies
The Company holds an ATOL granted by the CAA which falls due for renewal in March 2025.
The risk factors described below are those which the directors believe are potentially significant but should not be regarded as a complete and comprehensive statement of all potential risks and uncertainties facing the Company.
Principal risks and uncertainties
Talent management/staff retention
Company’s success is heavily dependent on retaining key management and sales personnel. Attraction and retention of talent is vital for its continued success and we are proud to have such an experienced and long serving team.
The company offers competitive levels of remuneration, and a host of benefits including health care, cycle scheme and above statutory levels of holiday allowance and pension contributions. An EMI scheme is also in place.
The company is committed to investing in the training and development of its staff with several members completing a variety of courses during the year.
 

Page 1

 
STEPPES TRAVEL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

 
Political volatility, natural catastrophes and outbreaks
The provision of the Company’s holidays and travel services is exposed to the inherent risk of domestic and/or international incidents affecting some of the countries/destinations within its operations. Such incidents include:
 - acts of terrorism, particularly in key tourist destinations:
 - natural disasters in key tourist destinations:
 - weather conditions, both in the UK and in key tourist destinations:
 - health epidemics in key tourist destinations and the UK:
 - increases in government taxes in both UK and overseas:
 - wars or other international incidents which affect air or sea travel
The inability to respond efficiently and effectively to large scales events could lead to significant operational disruption leading to reduced profits/larger losses caused by holiday cancellations and/or repatriation of customers, and a general decline in consumer demand. The company deals with this by having a robust crisis management procedure in place with regular crisis management training. As it offers a broad range of destinations the company is able to pivot easily to offer would-be travellers to an affected country a range of alternatives, and it is not heavily reliant on any one geographical region.
Regulatory environment 
The Company operates with in a highly regulated environment, and as such is exposed to various regulators such as the Civil Aviation Authority (“CAA”), which issues the Company’s Air Travel Organisation Licence (“ATOL”) which is required for the Company to operate its flight inclusive packages. This licence is renewed in March each year and is subject to assessments of fitness and financial criteria, the framework of which is available on the CAA’s website (www.caa.co.uk). The Company continues to operate under an escrow arrangement established with the Air Travel Trust, where client funds are released once the client has returned from their holiday.
The Company is also a member of the Association of Bonded Travel Organisers Trust (“ABTOT”) and as such is under the high degree of financial and operational scrutiny required to be granted and maintain insurance bonding in order to protect its sales of non-flight packages.
Commercial relationships:
The Company has well established and close relationships with customers and suppliers and the risk is spread by not placing over-reliance on any one supplier in any particular area. The management team meets regularly with suppliers to maintain good working relationships and to understand the suppliers’ financial position.
Information technology:
The Company is heavily reliant upon information technology. Investment has been made to ensure the Company has advanced and efficient systems in place, but there is a risk if there were a major failure - particularly if it were to affect reservations systems.
Cyber Security
In recognition of the increased risks of a cyber attack or breach the company ensures that all staff receive regular online training via the Knowbe4 programme, and has put Cyber insurance cover in place.


 
Page 2

 
STEPPES TRAVEL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024


Positive Impact Travel
We continue to focus on philanthropy to enhance the positive impact of our business and that travel is a force for good. We have undertaken an extensive audit of our key partners, using an Impact Questionnaire to verify their credentials in relation to community, conservation, carbon and philanthropy, and we continue to prioritise the selling of properties we believe to have impeccable sustainability standards.
We are proud to be B Corp Certified and a member of the Travel by B Corp group.
Summary of Steppes Travel philanthropic giving for FY2023-24
As part of our impact strategy, we have committed to give a minimum of 1% of our turnover to support community, conservation and carbon sequestration initiatives. The figure of £169,505 is approximately 1.4% of our turnover for FY23/24.
Carbon offset of clients' flights based on economy class seats £62,321 paid to World Land Trust.
Carbon offset for our UK operations (office energy use, waste, commute, business travel) £952 paid to World Land Trust.
Steppes Fund For Change (SFFC) £106,232 as follows:
Galapagos Conservation Trust £32,802
Long Table £26,717
Sea Wilding £26,717
Steppes fund for female guides £6,442
Galapagos Whale Shark Project £4,141
Ukraine War PTSD Initiative £2,513
I Am Not Afraid of The Wolf £1,500
The Ocean Foundation £1,500
Solar Aid £1,500
Friends of Sudan £1,500
Oscar Foundation £900












 
Page 3

 
STEPPES TRAVEL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024


Financial key performance indicators
 
The key performance indicators used by the directors to monitor the progress of the Company are set out below:
 

2024
2023
        £
        £
Turnover

12,080,048

12,301,214

Gross profit

3,122,098

2,963,088

Gross profit margin %

25.8%

24.1%

Profit/(loss) before tax

883,740

788,957


The Company’s profit before taxation for the year ended 31 August 2024 was £883,740 (2023: £788,957).
The Company’s turnover for the year ended 31 August 2024 was £12,080,048 (2023: £12,301,214). Turnover was similar year on year due to the high volume of Covid postponements operated during FY 2023, and demand has been strong throughout FY 2024. 
The cash balance at the end of the year weas £4,537,641 (2023: £3,393,559).


This report was approved by the board on 12 December 2024 and signed on its behalf.



................................................
J C Wateridge
Director

Page 4

 
STEPPES TRAVEL LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

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

Directors' responsibilities statement

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

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


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

make judgments and accounting estimates that are reasonable and prudent;

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

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

Financial protection of client monies
The Company protects funds relating to ATOL bookings by use of an independently administered Trust account. 
Refer to note 17 for further details. 

Principal activity

The Company's principal activity during the year continued to be the provision of tailored travel holidays and fixed
departure groups.

Results and dividends

The profit for the year, after taxation, amounted to £651,658 (2023 - £596,958).

No dividends  were paid or proposed for the year to 31 August 2024.

Page 5

 
STEPPES TRAVEL LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024


Directors

The directors who served during the year were:

S C Beeching 
R D Dikstra 
R D Kleinwort 
N A G Laing 
R A Brown 
J C Wateridge 
Ms H Rhys Williams 

Disclosure of information to auditors

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

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

Auditors

Under section 487(2) of the Companies Act 2006White Hart Associates (London) Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 12 December 2024 and signed on its behalf.
 





................................................
J C Wateridge
Director

Page 6

 
STEPPES TRAVEL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEPPES TRAVEL LIMITED
 

Opinion


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


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 August 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.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Page 7

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


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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:


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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.


Page 8

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


Auditors' responsibilities for the audit of the financial statements
 

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


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

- We exercise professional judgement and maintain professional scepticism throughout the audit;
- We identify and assess the risks of material misstatement of the financial statements, whether due to fraud orerror, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the deliberate override of internal control;
- We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control;
- We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made;
- We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
- We review the scope of the Company's compliance with its regulator, the Civil Aviation Authority ("CAA") and its membership of The Association of Bonded Travel Organisers Trust Limited ("ABTOT")  and sample test relevant documentation to assess this and the effectiveness of its control environment;
- We review the Company's relationships with related parties and other group companies, identifying and disclosing transactions during the year and balances at year-end with such parties;
- We conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. if we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the entity to cease to continue as a going concern.


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


Page 9

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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Ms N A Spoor FCA FCCA (Senior Statutory Auditor)
  
for and on behalf of
White Hart Associates (London) Limited
 
Chartered Accountants and Statutory Auditors
  
2nd Floor, Nucleus House
2 Lower Mortlake Road
Richmond
TW9 2JA

12 December 2024
Page 10

 
STEPPES TRAVEL LIMITED
 
 
INCOME STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
Note
£
£

  

Turnover
 4 
12,080,048
12,301,214

Cost of sales
  
(8,957,950)
(9,338,126)

Gross profit
  
3,122,098
2,963,088

Distribution costs
  
(230,026)
(103,803)

Administrative expenses
  
(2,124,271)
(1,945,834)

Other operating income
 5 
20,387
(155,186)

Operating profit
 6 
788,188
758,265

Interest receivable and similar income
 10 
116,287
54,033

Interest payable and similar expenses
 11 
(20,735)
(23,341)

Profit before tax
  
883,740
788,957

Tax on profit
 12 
(232,082)
(191,999)

Profit for the financial year
  
651,658
596,958

The notes on pages 19 to 38 form part of these financial statements.

Page 11

 
STEPPES TRAVEL LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
Note
£
£


Profit for the financial year

  

651,658
596,958

Other comprehensive income
  


Hedge reserve movement
  
(32,625)
(106,862)

Other comprehensive income for the year
  
(32,625)
(106,862)

Total comprehensive income for the year
  
619,033
490,096

The notes on pages 19 to 38 form part of these financial statements.

Page 12

 
STEPPES TRAVEL LIMITED
REGISTERED NUMBER: 03307429

STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
7,185
44,220

Tangible assets
 14 
25,004
33,610

Investments
 15 
316
316

  
32,505
78,146

Current assets
  

Debtors: amounts falling due within one year
 16 
2,237,561
1,844,916

Cash at bank and in hand
 17 
4,537,641
3,393,559

  
6,775,202
5,238,475

Creditors: amounts falling due within one year
 18 
(5,661,940)
(4,512,398)

Net current assets
  
 
 
1,113,262
 
 
726,077

Total assets less current liabilities
  
1,145,767
804,223

Creditors: amounts falling due after more than one year
 19 
(50,633)
(333,319)

Provisions for liabilities
  

Deferred tax
 21 
(4,049)
-

  
 
 
(4,049)
 
 
-

Net assets
  
1,091,085
470,904

Page 13

 
STEPPES TRAVEL LIMITED
REGISTERED NUMBER: 03307429
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Capital and reserves
  

Called up share capital 
 22 
380,976
380,593

Share premium account
 24 
204,085
203,320

Capital redemption reserve
 24 
17,802
17,802

Foreign exchange reserve
 24 
(57,033)
(24,408)

Profit and loss account
 24 
545,255
(106,403)

  
1,091,085
470,904


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 December 2024.




................................................
J C Wateridge
Director

The notes on pages 19 to 38 form part of these financial statements.

Page 14

 

 
STEPPES TRAVEL LIMITED


 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024



Called up share capital
Share premium account
Capital redemption reserve
Foreign exchange reserve
Profit and loss account
Total equity 


£
£
£
£
£
£


At 1 September 2023
380,593
203,320
17,802
(24,408)
(106,403)
470,904



Comprehensive income for the year


Profit for the year

-
-
-
-
651,658
651,658


Hedge reserve movement
-
-
-
(32,625)
-
(32,625)



Other comprehensive income for the year
-
-
-
(32,625)
-
(32,625)



Total comprehensive income for the year
-
-
-
(32,625)
651,658
619,033



Contributions by and distributions to owners


Shares issued during the year
383
765
-
-
-
1,148



Total transactions with owners
383
765
-
-
-
1,148



At 31 August 2024
380,976
204,085
17,802
(57,033)
545,255
1,091,085



The notes on pages 19 to 38 form part of these financial statements.

Page 15

 

 
STEPPES TRAVEL LIMITED


 

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



Called up share capital
Share premium account
Capital redemption reserve
Foreign exchange reserve
Profit and loss account
Total equity


£
£
£
£
£
£


At 1 September 2022
380,593
203,320
17,802
82,454
(703,361)
(19,192)



Comprehensive income for the year


Profit for the year

-
-
-
-
596,958
596,958


Hedge reserve movement
-
-
-
(106,862)
-
(106,862)



Other comprehensive income for the year
-
-
-
(106,862)
-
(106,862)



Total comprehensive income for the year
-
-
-
(106,862)
596,958
490,096



Total transactions with owners
-
-
-
-
-
-



At 31 August 2023
380,593
203,320
17,802
(24,408)
(106,403)
470,904



The notes on pages 19 to 38 form part of these financial statements.

Page 16

 
STEPPES TRAVEL LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
651,658
596,958

Adjustments for:

Amortisation of intangible assets
37,036
39,284

Depreciation of tangible assets
17,064
18,490

Interest paid
20,735
23,341

Interest received
(116,287)
(54,033)

Taxation charge
232,082
191,999

Decrease in stocks
-
12,059

(Increase)/decrease in debtors
(507,658)
242,895

Increase/(decrease) in creditors
895,452
(582,354)

Net cash generated from operating activities

1,230,082
488,639


Cash flows from investing activities

Purchase of tangible fixed assets
(8,458)
(33,646)

Interest received
116,287
54,033

Net cash from investing activities

107,829
20,387

Cash flows from financing activities

Issue of ordinary shares and payment of unpaid share capital
32,449
-

Repayment of loans
(125,543)
(86,257)

Repayment of other loans
(80,000)
-

Interest paid
(20,735)
(23,341)

Net cash used in financing activities
(193,829)
(109,598)

Net increase in cash and cash equivalents
1,144,082
399,428

Cash and cash equivalents at beginning of year
3,393,559
2,994,131

Cash and cash equivalents at the end of year
4,537,641
3,393,559


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,537,641
3,393,559

4,537,641
3,393,559


The notes on pages 19 to 38 form part of these financial statements.

Page 17

 
STEPPES TRAVEL LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2024




At 1 September 2023
Cash flows
At 31 August 2024
£

£

£

Cash at bank and in hand

3,393,559

1,144,082

4,537,641

Debt due after 1 year

(333,319)

213,319

(120,000)

Debt due within 1 year

(86,257)

(7,776)

(94,033)


2,973,983
1,349,625
4,323,608

The notes on pages 19 to 38 form part of these financial statements.

Page 18

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1.


General information

Steppes Travel Limited is a private company limited by shares and incorporated in England. Its registered office is 51 Castle Street, Cirencester, Gloucestershire, GL7 1QD

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Going concern

The Company’s management and directors review the financial position and the forecasts for the Company on a regular basis, to ensure they are in a position to react to and mitigate the financial impact from any downturn in trading. The directors have made an assessment of the Company’s ability to continue as a going concern, and have considered a number of future scenarios, synthesizing key drivers of the Company’s trading performance, including consumer demand, post balance sheet trading, booking trajectory, and impact from both financial and geopolitical instability. However, economic uncertainty from interest rates and a new UK government means the Company remains in a volatile environment.
The directors have prepared profit and loss account projections and cash flow forecasts for the period to August 2026 which reflect operational liquidity throughout. The cashflow forecasts reflect ongoing complaince with the liquidity covenant agreed with the Civil Aviation Authority in connection with the ongoing maintenance of the Company's ATOL. This covenant requires the Company to maintain an unrestricted minimum cash balance of £583,000 at the end of each month throughout the Company's licence year to March each year.
The directors have also performed a sensitivity analysis on the Company's budgets and forecasts to assess the financial impact of any potential further slowdown in trading. This sensitivity analysis shows that the Company has enough liquidity and cash to trade through a further slowdown.
Consequently, the directors are confident that the Company will have sufficient funds and cash reserves to continue to meet liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

 
2.3

Revenue

Turnover is the amount derived from ordinary activities and represents the aggregate revenue receivable from tours departed during the year, together with the total of cancelled bookings during the year.

Page 19

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.4

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.6

Interest income

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

 
2.7

Finance costs

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

 
2.8

Borrowing costs

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

 
2.9

Pensions

Defined contribution pension plan

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

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

Page 20

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

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

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

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

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

 
2.11

Intangible assets

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

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

 The estimated useful lives range as follows:

Development expenditure
-
3/5 years

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 21

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Over 5 years
Plant and machinery
-
Over 3 years
Fixtures and fittings
-
Over 4 years

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

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

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Income Statement for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

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

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

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 22

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

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

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

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

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

Basic financial assets

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

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

Other financial assets

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

Impairment of financial assets

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

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The
Page 23

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)

impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

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

Financial liabilities

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

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

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

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

Other financial instruments

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

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Page 24

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.19

Hedge accounting

The Company uses foreign currency forward contracts to manage its exposure to cash flow risk on its recognised and highly probable liabilities. These derivatives are measured at fair value at each reporting date.

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

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
a) Critical judgments in applying the Company's accounting policies
The directors believe that there are no critical judgments involved in applying the Company's accounting policies that warrant disclosure.
b) Key accounting estimates and assumptions
The directors believe that there are no key accounting estimates and assumptions involved in applying the
Company's accounting policies that warrant disclosure.

Page 25

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

4.


Turnover

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


2024
2023
£
£

Tailored travel holidays
12,080,048
12,301,214

12,080,048
12,301,214


2024
2023
£
£

United Kingdom
12,080,048
12,301,214

12,080,048
12,301,214


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Gains/(losses) on foreign exchange
20,387
(155,186)

20,387
(155,186)



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation
17,064
18,490

Amortisation
37,036
39,284

Fees payable to the Company's auditor and associates for the audit of the Company's annual financial statements
13,125
11,400

Defined pension scheme
72,364
57,261

Other operating lease rentals
33,757
30,805

Page 26

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

7.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
13,125
11,400

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
1,413,014
1,250,896

Social security costs
159,833
138,777

Cost of defined contribution scheme
72,364
57,261

1,645,211
1,446,934


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


        2024
        2023
            No.
            No.







Administration
8
5



Development
3
4



Marketing
3
3



Sales
10
10

24
22

Page 27

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
295,583
265,437

Company contributions to defined contribution pension schemes
20,029
14,057

315,612
279,494


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £165,392 (2023 - £141,212).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £16,237 (2023 - £10,661).

The total accrued pension provision of the highest paid director at 31 August 2024 amounted to £NIL (2023 - £NIL).

The amount of the accrued lump sum in respect of the highest paid director at 31 August 2024 amounted to £NIL (2023 - £NIL).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
116,287
54,033

116,287
54,033


11.


Interest payable and similar expenses

2024
2023
£
£


Other loan interest payable
20,735
23,341

20,735
23,341

Page 28

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
139,055
-


139,055
-


Total current tax
139,055
-

Deferred tax


Origination and reversal of timing differences
93,027
191,999

Total deferred tax
93,027
191,999


Tax on profit
232,082
191,999

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
883,740
788,957


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19   %)
220,935
149,902

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(286)
2,935

Capital allowances for year in excess of depreciation
1,668
(3,328)

Utilisation of tax losses
(83,262)
(149,509)

Deferred tax
93,027
191,999

Total tax charge for the year
232,082
191,999


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 29

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

13.


Intangible assets




Development expenditure

£



Cost


At 1 September 2023
195,747



At 31 August 2024

195,747



Amortisation


At 1 September 2023
151,527


Charge for the year on owned assets
37,035



At 31 August 2024

188,562



Net book value



At 31 August 2024
7,185



At 31 August 2023
44,220



Page 30

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

14.


Tangible fixed assets





Short-term leasehold property
Plant and machinery
Total

£
£
£



Cost or valuation


At 1 September 2023
201,709
171,445
373,154


Additions
1,456
7,002
8,458



At 31 August 2024

203,165
178,447
381,612



Depreciation


At 1 September 2023
194,236
145,308
339,544


Charge for the year on owned assets
5,218
11,846
17,064



At 31 August 2024

199,454
157,154
356,608



Net book value



At 31 August 2024
3,711
21,293
25,004



At 31 August 2023
7,473
26,137
33,610




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Short leasehold
3,711
7,473

3,711
7,473


Page 31

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

15.


Fixed asset investments





Investments in subsidiary/associate companies

£



Cost or valuation


At 1 September 2023
316



At 31 August 2024
316





Subsidiary/ Associate undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Steppes East Limited
Ordinary
100%
Art of Travel Limited
Ordinary
100%
Discovery Initiatives Limited
Ordinary
100%
Steppes Travel (TCI) Limited
Ordinary
100%
Travel Russia (Europe) Limited
Ordinary
15%

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

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

Steppes East Limited
100
-

Art of Travel Limited
100
-

Discovery Initiatives Limited
100
-

Steppes Travel (TCI) Limited
15
-

Travel Russia (Europe) Limited
1
(9,543)

Page 32

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

16.


Debtors

2024
2023
£
£


Trade debtors
11,820
-

Other debtors
62,769
62,164

Called up share capital not paid
74,799
106,100

Prepayments and accrued income
2,088,173
1,587,674

Deferred taxation
-
88,978

2,237,561
1,844,916


Included in prepayments and accrued income is the sum of £2,024,892 (2023 - £1,532,458) of supplier payments made in advance for departures post 31 August 2024.


17.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
4,537,641
3,393,559

4,537,641
3,393,559


Included in the cash at bank as at 31 August 2024 was the sum of £2,741,634 held in a CAA Escrow Trust Account and are consumer protected restricted funds. The terms of the trust deed are that 70% of all customer monies received for ATOL protected bookings remain within the independently administered CAA Escrow Trust Account until the customer returns from their holiday. The Company's cash at bank as at 31 August 2024 was:
Unrestricted Cash - £1,793,007
Restricted Cash - £2,741,634
Total  Cash - £4,537,641
In accordance with the maintenace of the company's ATOL, the Company is required to maintain at all times a minimum unrestricted cash balance of £583,000. Company's cashflows to 31 March 2026 reflect ongoing compliance with this.

Page 33

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
43,400
86,257

Other loans
120,000
-

Trade creditors
5,265
11,888

Corporation tax
144,321
-

Taxation and social insurance
34,728
31,239

Other creditors
14,375
13,705

Accruals
331,154
265,935

Deferred income
4,911,664
4,078,966

Financial instruments
57,033
24,408

5,661,940
4,512,398


Included in deferred income is the sum of £4,901,160 (2023 - £4,078,966) of customer monies received in advance for departures post 31 August 2024.
Other loans consist of £120,000 of shareholder's loans.


19.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
50,633
133,319

Other loans
-
200,000

50,633
333,319


Bank loans consist of £94,033 of Coronavirus business interruption loan which is provided by Barclays Bank Plc and is supported by the Coronavirus Business Interruption Loan Scheme. The loan is for a period of 72 month term with no capital repayments or interest payments in the first 12 months. Interest is payable at 2.78% per annum  thereafter.

Page 34

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

20.


Loans


2024
2023
£
£

Amounts falling due within one year

Bank loans
43,400
86,257

Other loans
120,000
-


163,400
86,257

Amounts falling due 1-2 years

Bank loans
43,400
82,686

Other loans
-
200,000


43,400
282,686

Amounts falling due 2-5 years

Bank loans
7,233
50,633


7,233
50,633


214,033
419,576


Page 35

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

21.


Deferred taxation




2024
2023


£

£






At beginning of year
88,978
280,977


Charged to profit or loss
(93,027)
(191,999)



At end of year
(4,049)
88,978

The deferred taxation balance is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(4,049)
280,977

Tax losses carried forward
-
(191,999)

(4,049)
88,978


22.


Share capital

2024
2023
£
£
Allotted and called up 



377,111 (2023 - 377,111) Ordinary shares of £1.00 each
377,111
377,111
308,215 (2023 - 308,200) Full dividends and voting rights "A" Ordinary shares of £0.01 each
3,082
3,082
78,251 (2023 - 40,000) A Ordinary shares of £0.01 each
783
400

380,976

380,593


During the year 38,251 full dividends and voting rights "A" Ordinary shares of £0.01 each were issued by the Company. These shares were issued at a premium of £0.02 per share. All shares were fully paid.

Page 36

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

23.


Share-based payment

During the prior year to 31 August 2023 the company granted further options to employees to purchase £0.01 “A” Ordinary shares, under their existing EMI scheme. HMRC agreed an Actual Market Value per option share of £0.03, also the exercise price per share, and an Unrestricted Market Value of £0.04 per option share. The total number of option shares granted during the 2023 year was 150,000 £0.01 “A” Ordinary shares with a nominal value of £1,500. As at the year ended 31st August 2023 none of the options were exercised.  
During the year to 31st August 2024, with the conditions for exercise being met, options were exercised by employees on 38,251 £0.01 “A” Ordinary shares.  Options over 3,062 £0.01 “A” Ordinary shares lapsed. 
As at the year ended 31st August 2024 there were unexercised options over 107,574 £0.01 Ordinary shares. 
There were also a further 30,000 A Ordinary shares of £1 nominal value remain under option. These options were granted under an EMI scheme in 2020. 


24.


Reserves

Share premium account

The share premium account represents the additional amount shareholders have paid for their issued shares that was in excess of the par value of those shares.

Capital redemption reserve

The capital redemption reserve represents a non-distributable reserve created upon redemption of preference shares or a share buyback and represents the nominal value or face value of the shares redeemed or bought back.

Foreign exchange reserve

Foreign exchange reserve relates to the amount of gain or loss recognised on forward contracts and derivatives that are cash flow hedges for committed foreign exchange transactions. This reserve is nondistributable.

Profit and loss account

The profit and loss account represents the net distributable reserves of the Company at the date of the statement of financial position.


25.


Contingent liabilities

At 31 August 2024, there were contingent liabilities outstanding in respect of counter indemnities and guarantees given by the Company, in the normal course of business, to the Company's bond insurance obligors in respect of the ABTOT travel bonds amounting to £290,882 (2023 - £169,308). 

Page 37

 
STEPPES TRAVEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

26.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension charge represents contributions payable by the Company to the fund and amounted to £72,364 (2023: £57,261).


27.


Commitments under operating leases

The Company had no commitments under non-cancellable operating leases at the reporting date.


28.


Related party transactions

Mr R D Dikstra - a director and shareholder was paid consultancy fees amounting to £4,667 (2023: £8.000) for consultancy services provided during the year. There was £2,000 due to the related party at the year end ( 2023: £2,000) included in creditors due within one year.
Mr S C Beeching - a director and shareholder was paid consultancy fees amounting to £4,667 (2023: £8,000) for consultancy services provided during the year. During the year Mr S C Beeching also took a loan of £15,602 from the Company. There was £15,602 due from the related party at the year end (2023: £2,000 due to the related party) included in debtors due within one year.
Mr R D Kleinwort - a director and shareholder was paid consultancy fees amounting to £4,667 (2023: £8,000) for consultancy services provided during the year. There was £667 due to the related party at the year end (2023: £2,000)  included in creditors due within one year.
Lady H Rhys Williams - a director and shareholder was paid consultancy fees amounting to £8,000 (2023: £8,000 ) for consultancy services provided during the year. There was £10,000 due to the related party at the year end (2023:£2,000)  included in creditors due within one year.
 


29.


Controlling party

In the opinion of the directors there is no one controlling party.

 
Page 38