Registered number:
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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DTW (HOLDINGS) LIMITED
COMPANY INFORMATION
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DTW (HOLDINGS) LIMITED
CONTENTS
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DTW (HOLDINGS) LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The Directors are pleased to report a record breaking year in terms of revenues with both our Education and Holidays divisions demonstrating strong growth.
The business has however continued to make further substantial investment in people and technology to facilitate the continued growth of the business which has resulted in the business making an operating loss in the Financial Year. The Directors felt this investment was necessary to ensure future revenue growth could be achieved in a more efficient and profitable manner with the benefits anticipated to be felt in FY25 and beyond.
Forward sales are at record levels and the business is confident turnover in 2025 will be another record breaking year with a return to profitability.
Principle risks previously highlighted included exceptional environmental events such as volcanic activity in Iceland. These occurrences present a major risk to both consumer confidence and operational delivery. This was clearly illustrated in FY24 when volcanic eruptions significantly and adversely effected consumer demand for Iceland Holidays resulting in a material downturn in bookings. This event highlighted the importance and success of our strategy to diversify our destination and product mix.
Other risks and uncertainty to the business continues to be the cost of living crisis and any possible downturn in bookings as a result of consumer buying patterns. We however remain confident the strength of our brand, client profile and diversification of business activities will enable the business to avoid any material downturn . Consumer concerns about the environment and sustainable travel, particularly important to the Education sector where there is increasing governance, is a matter impacting the wider Travel Sector. Discover the World is confident that actions and partners we have engaged with to address our carbon footprint will ensure we remain at the forefront of sustainable travel. The significant increase in cost per acquisition on traditional digital marketing platforms is an increasing concern across the wider travel industry. The uncontrollable nature of these increases is influencing our decisions to invest in a new website, brand investment and wider trade distribution channels to reduce our dependence on traditional digital marketing.
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DTW (HOLDINGS) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Total revenues increased to £24.6m, a very encouraging 21% increase.
The Education Division experienced revenue growth of 38% resulting in new record highs in both revenues and trips. Holiday revenues increased by a more conservative 11% having been significantly impacted by the downturn in Iceland bookings. Average selling prices overall increased by 2% impacted by the weighting more towards lower value Education trips rather than Specialist consumer holidays. Reported margins had an adverse movement of 1.2% basis points to 24.2%. Underlying margins adjusting for the release of historic provisions in FY24 actually demonstrated an increase of 0.9% pts. Administrative expenses have again increased significantly as we continued to invest in growth and efficiencies. Total costs rose by 37% to £6.4m. As a % of revenues increasing from 23% to 26% though this is forecast to return to under 23% in FY25. Non- Financial key performance indicators The key non-financial indicators are Feefo and Trustpilot ratings.
This report was approved by the board and signed on its behalf.
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DTW (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The directors present their report and the financial statements for the year ended 30 September 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £171,078 (2023 - profit £627,996).
The directors have recommended a dividend of £275,750 (2023: £370,000) for the financial year.
The directors who served during the year were:
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DTW (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The past year has seen us continue with our strategy of investing in technology and People that will enable us to better serve our customers in a more efficient and cost-effective manner. Next year we will be launching a new website, Education Customer Portal, implementing AI robotics along with a new data warehouse and MI solution. Investments demonstrating that we intend to grow the business utilising and enhancing technology to maximise efficiencies.
Furthermore, following extensive research and consultancy we will be launching an exciting new brand design which will enhance our marketing impact across all distribution channels. The Nordic and Worldwide Holiday brands continue to refine and develop both existing and new programmes and destinations. A new WW destination is planned to be launched this year along with extensive new Nordic Summer product. The Education Division following extensive research and product development will be launching new subject tours early 2024 taking advantage of our strong brand awareness and market strength. In view of the above opportunities and developments and the extremely encouraging current booking trends the Directors remain confident in the future of the Business and its growth potential.
The auditors, Xeinadin Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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DTW (HOLDINGS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DTW (HOLDINGS) LIMITED
We have audited the financial statements of DTW (Holdings) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In forming our opinion, we have considered the adequacy of the disclosures made in the financial statements concerning the Group's or the parent Company's ability to continue as a going concern.
The financial statements do not include any adjustments that would result from a failure to continue as a going concern.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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DTW (HOLDINGS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DTW (HOLDINGS) LIMITED (CONTINUED)
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 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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DTW (HOLDINGS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DTW (HOLDINGS) LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations;
∙Reviewing minutes of meetings of those charged with governance;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the Group is subject to many other laws and regulations where the consequence of non compliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation or the loss of the Group's license to operate. We identified the following areas as those most likely to have such an effect: health and safety including data protection laws, employment law, ATOL, ABTA, ABTOT, AITO and IATA compliance for recognising the nature of the Company's activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities 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.
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DTW (HOLDINGS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DTW (HOLDINGS) LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
8th Floor
Becket House
36 Old Jewry
EC2R 8DD
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DTW (HOLDINGS) LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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DTW (HOLDINGS) LIMITED
REGISTERED NUMBER: 09317305
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
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DTW (HOLDINGS) LIMITED
REGISTERED NUMBER: 09317305
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 36 form part of these financial statements.
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DTW (HOLDINGS) LIMITED
REGISTERED NUMBER: 09317305
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 36 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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