Company registration number 05655519 (England and Wales)
WHITE DESERT LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
WHITE DESERT LTD
COMPANY INFORMATION
Directors
Mr T H Baker
Mr R C Hain
Mr S E W Woodhead
Company number
05655519
Registered office
c/o Jamieson Alexander Limited
3-7 Temple Avenue
London
EC4Y 0DB
Auditor
Jamieson Alexander Audit Limited
Unit B2
The Point
Weaver Road
Lincoln
LN6 3QN
WHITE DESERT LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12 - 13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 36
WHITE DESERT LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Principal activities
The principal activity of the company and group continued to be that of a tour operator conducting expeditions to Antarctica.
Review of the business
Over the past 20 years, White Desert has pioneered luxury adventure tourism in Antarctica. In 2024, White Desert’s revenues from both Tourism and Scientific support reached record highs. The organisation continues to focus on improving both financial and operational efficiency, while mitigating risk.
The 2024 financial year was the second season of operating Echo Base and the tourism revenue generated at Echo surpassed that of our original flagship camp, Whichaway. We attribute this to the large volume of press generated around Echo, due to its design, which won several awards. Internally, our focus for the season was to ensure that guests visiting both camps experienced luxury hospitality and the sense of true Antarctic adventure that we promise.
The organisation has continued to invest in tangible assets to improve operational efficiency: for example, increasing the size of the polar traverse fleet so that increased fuel volumes can be transported to remote locations across Antarctica, which, in turn, helps reduce using aircraft to transport the fuel to its location. The Board of Directors approved purchases of runway lights, robust hydraulic aircraft stairs and weather monitoring systems to improve the safety and reliability of landing the Airbus A340 on Wolf’s Fang Runway. Other continuous improvements to infrastructure at Echo Base and Whichaway Camp, enhanced the overall guest experience.
As the first fully operational season post the COVID-19 pandemic, a Net Profit before Taxation of USD $1,714,000 was considered to be a great success. The directors are further pleased with the fact that Profit reserves are now positive at USD $931,000.
Gross Profit margin has increased to 17.4% (2023: 13.0%) while decreases in administrative expenses were achieved and are sustainable. Cash reserves have increased from 2023: USD $136,000 to USD $2,204,000, and the organisation has enjoyed a total Net Asset growth of 129.8% year on year.
The organisation has a continued focus on driving sales through digital performance marketing and key account management within the travel trade space. This has resulted in an increased forward sales book for the 2025 tourism season.
WHITE DESERT LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties
Market risk
The company is reliant on the global demand for luxury, adventure travel to Antarctica. The travel industry is a competitive one, however the Group is somewhat isolated from competitive pressures due to the unique travel experiences it offers, ranging from Antarctic day trips to fully bespoke tours of the continent that deal with ultra high net worth individuals. Antarctic travel is well regulated and there are exceptionally few direct competitors. The Group has a reputation for quality, guest experience, and customer service. The Directors are confident the Group's position in the market will continue to increase. The Group has seen strong demand for its services following the COVID-19 pandemic. Demand is expected to remain strong despite headwinds facing the global economy.
Regulatory risk
The Group operates in an environment which is highly regulated, and subject to numerous laws and regulations covering a wide range of matters. We are licensed by the Foreign, Commonwealth and Development Office (FCDO) to operate in Antarctica and we are a member of the International Association of Antarctic Tour Operators (IAATO).
Our FCDO permit and membership of IAATO impose various environmental and other restrictions on the Group's on-ice activities. Failure to observe these restrictions could result in severe reputational damage. The company is continually ensuring that the compliance demands of these regulatory factors are met and the directors have ensured that the policies and culture in relation to this are well communicated to the Group's employees and contractors. Each year, we are continually examining and improving our logistics and supply chain for environmental improvements and impacts.
Financial risk
The Group's activities expose it to financial, foreign exchange, credit, and liquidity risks. The Group's principal financial instruments are trade and other receivables, cash and bank balances, and trade and other creditors. The main purpose of these instruments is for the Group to maintain sufficient liquidity for its operations.
Foreign exchange risk
The Group is exposed to currency movements by virtue of the fact that income and costs are incurred in different currencies. The Group manages this risk by receiving client receipts in the same currency as our principal costs, ie aviation services and fuel. We also accept payment for services rendered in different currencies, utilising these funds to discharge obligations in the same currency where possible.
Credit risk
The Group's principal exposures to credit risk arise from trade receivables, and loan debtors. Trade debtors arise through the sale of travel, but also goods and services rendered on the Antarctic continent, usually to research institutions of nation states. Guests must pay for their travel before departure, and due to the inherent characteristics of the Group's financial assets the risk of non-recovery is considered to be remote.
In the view of the Directors, the risk that a counterparty will fail to discharge its obligations, resulting in financial loss to the Group, is low.
Liquidity risk
Due to weather and light conditions, the Antarctic travel season lasts from November until February. The Group funds its operations in low season with a mixture of cash, trade receivables, trade creditors and borrowing where necessary.
WHITE DESERT LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Development and performance
In May 2025 White Desert announced plans to offer luxury trips in South America, expanding our existing itineraries outside of Antartica for the first time.
Key performance indicators
The performance of the business is monitored using several key performance indicators, most notably gross margin and profit before tax. These KPIs are discussed above.
Mr S E W Woodhead
Director
9 June 2025
WHITE DESERT LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Results and dividends
The results for the year are set out on page 9.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr T H Baker
Mr R C Hain
Mr S E W Woodhead
Future developments
The board continues to explore opportunties for product diversification with a primary focus on expanding the geographical scope of the group's operations.
Statement of directors' responsibilities
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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies 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 and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 auditor of the company 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 auditor of the company is aware of that information.
Market value of fixed assets
In the opinion of the directors, the company's on-ice assets, which are stated at depreciated historic cost, have a market value materially in excess of their book values due to their unique nature and geographical location.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
WHITE DESERT LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
On behalf of the board
Mr S E W Woodhead
Director
9 June 2025
WHITE DESERT LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHITE DESERT LTD
- 6 -
Opinion
We have audited the financial statements of White Desert Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 group and parent 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.
We draw your attention to Note 25 which describes a contingent liability in respect of the removal of on-ice assets from Antarctica. Our opinion is not modified in respect of this matter.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.
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.
WHITE DESERT LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WHITE DESERT LTD
- 7 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the 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 group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with the company's professional advisors.
WHITE DESERT LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WHITE DESERT LTD
- 8 -
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.
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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Mr James Rylatt (Senior Statutory Auditor)
For and on behalf of Jamieson Alexander Audit Limited, Statutory Auditor
Chartered Accountants
Unit B2
The Point
Weaver Road
Lincoln
LN6 3QN
19 June 2025
WHITE DESERT LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
as restated
Notes
$000
$000
Turnover
3
22,898
19,860
Cost of sales
(18,923)
(17,274)
Gross profit
3,975
2,586
Administrative expenses
(2,280)
(2,899)
Other operating income
4
-
Operating profit/(loss)
4
1,699
(313)
Interest receivable and similar income
7
36
Interest payable and similar expenses
8
(21)
(3)
Profit/(loss) before taxation
1,714
(316)
Tax on profit/(loss)
9
(308)
(42)
Profit/(loss) for the financial year
1,406
(358)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
WHITE DESERT LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
as restated
$000
$000
Profit/(loss) for the year
1,406
(358)
Other comprehensive income
Currency translation loss arising in the year
(27)
(35)
Cash flow hedges gain arising in the year
Total comprehensive income for the year
1,379
(393)
Total comprehensive income for the year is all attributable to the owners of the parent company.
WHITE DESERT LTD
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
as restated
Notes
$000
$000
$000
$000
Fixed assets
Intangible assets
54
76
Tangible assets
11
6,128
6,523
6,182
6,599
Current assets
Stocks
14
1,967
1,758
Debtors
15
2,372
594
Cash at bank and in hand
2,204
136
6,543
2,488
Creditors: amounts falling due within one year
16
(9,736)
(7,778)
Net current liabilities
(3,193)
(5,290)
Total assets less current liabilities
2,989
1,309
Creditors: amounts falling due after more than one year
17
(343)
(252)
Provisions for liabilities
Deferred tax liability
19
203
(6)
(203)
6
Net assets
2,443
1,063
Capital and reserves
Called up share capital
Share premium account
1,572
1,572
Other reserves
(60)
(33)
Profit and loss reserves
931
(476)
Total equity
2,443
1,063
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 9 June 2025 and are signed on its behalf by:
09 June 2025
Mr S E W Woodhead
Director
Company registration number 05655519 (England and Wales)
WHITE DESERT LTD
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
as restated
Notes
$000
$000
$000
$000
Fixed assets
Intangible assets
54
76
Tangible assets
11
5,713
6,451
Investments
12
7
7
5,774
6,534
Current assets
Stocks
14
1,967
1,758
Debtors
15
2,192
331
Cash at bank and in hand
2,129
129
6,288
2,218
Creditors: amounts falling due within one year
16
(9,769)
(7,676)
Net current liabilities
(3,481)
(5,458)
Total assets less current liabilities
2,293
1,076
Creditors: amounts falling due after more than one year
17
(133)
(252)
Provisions for liabilities
Deferred tax liability
19
203
3
(203)
(3)
Net assets
1,957
821
Capital and reserves
Called up share capital
Share premium account
1,572
1,572
Profit and loss reserves
385
(751)
Total equity
1,957
821
WHITE DESERT LTD
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
31 March 2024
- 13 -
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was $1,136,140 (2023 - $469,985 loss).
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 9 June 2025 and are signed on its behalf by:
09 June 2025
Mr S E W Woodhead
Director
Company registration number 05655519 (England and Wales)
WHITE DESERT LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Share premium account
Currency translation reserve
Profit and loss reserves
Total
$000
$000
$000
$000
$000
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
-
1,572
2
(363)
1,211
Effect of change in accounting policy
-
-
-
245
245
As restated
1,572
2
(118)
1,456
Year ended 31 March 2023:
Loss for the year
-
-
-
(358)
(358)
Other comprehensive income:
Currency translation differences
-
-
(35)
(35)
Total comprehensive income
-
-
(35)
(358)
(393)
Balance at 31 March 2023
1,572
(33)
(476)
1,063
Year ended 31 March 2024:
Profit for the year
-
-
-
1,406
1,406
Other comprehensive income:
Currency translation differences
-
-
(27)
(27)
Total comprehensive income
-
-
(27)
1,406
1,379
Balance at 31 March 2024
1,572
(60)
931
2,443
WHITE DESERT LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
$000
$000
$000
$000
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
-
1,572
(526)
1,046
Effect of change in accounting policy
-
-
245
245
As restated
1,572
(281)
1,291
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(470)
(470)
Balance at 31 March 2023
1,572
(751)
821
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
1,136
1,136
Balance at 31 March 2024
1,572
385
1,957
WHITE DESERT LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2024
2023
as restated
Notes
$000
$000
$000
$000
Cash flows from operating activities
Cash generated from operations
26
2,937
1,107
Interest paid
(21)
(3)
Income taxes paid
(135)
(120)
Net cash inflow from operating activities
2,781
984
Investing activities
Purchase of intangible assets
-
(61)
Proceeds from disposal of intangibles
(2)
-
Purchase of tangible fixed assets
(835)
(2,691)
Proceeds from disposal of tangible fixed assets
-
(2)
Repayment of loans
(5)
-
Interest received
36
Net cash used in investing activities
(806)
(2,754)
Financing activities
Redemption of shares
(16)
Repayment of bank loans
134
252
Net cash generated from financing activities
118
252
Net increase/(decrease) in cash and cash equivalents
2,093
(1,518)
Cash and cash equivalents at beginning of year
136
1,688
Effect of foreign exchange rates
(25)
(34)
Cash and cash equivalents at end of year
2,204
136
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
1
Accounting policies
Company information
White Desert Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is c/o Jamieson Alexander Limited, 3-7 Temple Avenue, London, EC4Y 0DB.
The group consists of White Desert Ltd and its subsidiary.
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 US dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The 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 for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company White Desert Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Website development
5 years
1.7
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 land and buildings
Over the period of the lease
Plant and equipment
3 to 20 years straight line
Fixtures and fittings
6 to 15 years straight line
Computers
5 to 15 years straight line
Motor vehicles
3 to 10 years straight line
Office equipment
6 to 15 years straight line
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 recognised in the profit and loss account.
The cost of on-ice assets does not include the cost of removal of those assets from Antarctica. The reasons for this are set out in Note 27 to the financial statements.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
1.10
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.11
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.
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
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.
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
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 group 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 group 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.
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.
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 23 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
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 group’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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
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 leased asset are consumed.
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
3
Turnover and other revenue
2024
2023
$000
$000
Other revenue
Interest income
36
-
Commissions received
1
-
The group's turnover in both the current and immediately preceding financial year is derived from a single class.
In the opinion of the directors, the disclosure of turnover by location of clients would be seriously prejudicial to the interests of the company and, accordingly, this information has not been disclosed.
4
Operating profit/(loss)
2024
2023
$000
$000
Operating profit/(loss) for the year is stated after charging:
Exchange losses
13
-
Depreciation of owned tangible fixed assets
1,246
853
(Profit)/loss on disposal of tangible fixed assets
-
2
Amortisation of intangible assets
22
15
Loss on disposal of intangible assets
2
-
Operating lease charges
47
7
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
$000
$000
For audit services
Audit of the financial statements of the group and company
21
25
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
2
4
-
3
Staff
92
21
-
2
Total
94
25
5
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
$000
$000
$000
$000
Wages and salaries
1,022
794
53
Social security costs
449
324
-
1
Pension costs
1
1
1,471
1,119
55
7
Interest receivable and similar income
2024
2023
$000
$000
Interest income
Interest on bank deposits
3
Other interest income
33
-
Total income
36
8
Interest payable and similar expenses
2024
2023
$000
$000
Interest on bank overdrafts and loans
3
-
Interest on finance leases and hire purchase contracts
18
-
Other interest
-
3
Total finance costs
21
3
9
Taxation
2024
2023
$000
$000
Current tax
Foreign current tax on profits for the current period
112
49
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
2024
2023
$000
$000
(Continued)
- 26 -
Deferred tax
Origination and reversal of timing differences
720
(7)
Previously unrecognised tax loss, tax credit or timing difference
(524)
Total deferred tax
196
(7)
Total tax charge
308
42
On 1 April 2023, the main rate of corporation tax in the United Kingdom increased from 19% to 25%.
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
$000
$000
Profit/(loss) before taxation
1,714
(316)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
429
(60)
Tax effect of expenses that are not deductible in determining taxable profit
7
Unutilised tax losses carried forward
259
Change in unrecognised deferred tax assets
(524)
Adjustments in respect of prior years
387
Effect of overseas tax rates
9
(98)
Transition adjustments
-
(59)
Taxation charge
308
42
10
Intangible fixed assets
Group
Website development
$000
Cost
At 1 April 2023 and 31 March 2024
109
Amortisation and impairment
At 1 April 2023
33
Amortisation charged for the year
22
At 31 March 2024
55
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Intangible fixed assets
(Continued)
- 27 -
Carrying amount
At 31 March 2024
54
At 31 March 2023
76
Company
Website development
$000
Cost
At 1 April 2023 and 31 March 2024
109
Amortisation and impairment
At 1 April 2023
33
Amortisation charged for the year
22
At 31 March 2024
55
Carrying amount
At 31 March 2024
54
At 31 March 2023
76
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
11
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Office equipment
Total
$000
$000
$000
$000
$000
$000
$000
Cost
At 1 April 2023
41
5,732
12
58
3,285
14
9,142
Additions
40
440
30
19
318
6
853
Exchange adjustments
(5)
(1)
(4)
(4)
(1)
(15)
At 31 March 2024
76
6,172
41
73
3,599
19
9,980
Depreciation and impairment
At 1 April 2023
20
1,479
3
25
1,085
7
2,619
Depreciation charged in the year
13
862
4
16
346
5
1,246
Exchange adjustments
(4)
(1)
(3)
(4)
(1)
(13)
At 31 March 2024
29
2,341
6
38
1,427
11
3,852
Carrying amount
At 31 March 2024
47
3,831
35
35
2,172
8
6,128
At 31 March 2023
21
4,253
9
33
2,200
7
6,523
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
Company
Plant and equipment
Computers
Motor vehicles
Total
$000
$000
$000
$000
Cost
At 1 April 2023
5,732
30
3,246
9,008
Additions
423
36
459
At 31 March 2024
6,155
30
3,282
9,467
Depreciation and impairment
At 1 April 2023
1,479
11
1,067
2,557
Depreciation charged in the year
859
6
332
1,197
At 31 March 2024
2,338
17
1,399
3,754
Carrying amount
At 31 March 2024
3,817
13
1,883
5,713
At 31 March 2023
4,253
19
2,179
6,451
Market value of fixed assets
In the opinion of the directors, the company's on-ice assets, which are stated at depreciated historic cost, have a market value materially in excess of their book values due to their unique nature and geographical location.
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
$000
$000
$000
$000
Investments in subsidiaries
13
7
7
Movements in fixed asset investments
Company
Shares in subsidiaries
$000
Cost or valuation
At 1 April 2023 and 31 March 2024
7
Carrying amount
At 31 March 2024
7
At 31 March 2023
7
13
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Subsidiaries
(Continued)
- 30 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
White Desert Africa Proprietary Limited
Cornerstone House,
16 Loop Street,
Cape Town, South Africa
Ordinary
100.00
14
Stocks
Group
Company
2024
2023
2024
2023
$000
$000
$000
$000
Raw materials and consumables
1,967
1,758
1,967
1,758
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
$000
$000
$000
$000
Trade debtors
300
268
299
47
Corporation tax recoverable
22
22
Amounts owed by group undertakings
-
31
29
129
Other debtors
380
295
284
155
Prepayments and accrued income
125
25
827
594
659
331
Amounts falling due after more than one year:
Other debtors
1,533
1,533
Deferred tax asset (note 19)
12
1,545
-
1,533
-
Total debtors
2,372
594
2,192
331
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
$000
$000
$000
$000
Bank loans
18
88
27
Trade creditors
1,160
3,567
1,325
3,529
Corporation tax payable
2
Other taxation and social security
79
58
8
29
Deferred income
21
3,241
3,241
Other creditors
4,536
32
4,536
32
Accruals and deferred income
632
4,119
632
4,086
9,736
7,778
9,769
7,676
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
$000
$000
$000
$000
Bank loans and overdrafts
18
298
252
133
252
Accruals and deferred income
45
343
252
133
252
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
$000
$000
$000
$000
Bank loans
386
252
160
252
Payable within one year
88
27
Payable after one year
298
252
133
252
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
$000
$000
$000
$000
Accelerated capital allowances
836
(6)
-
-
Tax losses
(633)
-
-
-
Short term timing differences
-
-
12
-
203
(6)
12
-
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
$000
$000
$000
$000
Accelerated capital allowances
836
3
-
-
Tax losses
(633)
-
-
-
203
3
-
-
Group
Company
2024
2024
Movements in the year:
$000
$000
Liability/(Asset) at 1 April 2023
(6)
3
Charge to profit or loss
197
200
Liability at 31 March 2024
191
203
The deferred tax liability set out above is expected to reverse over a significant number of years given it relates to accelerated capital allowances on assets with long useful economic lives.
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
$000
$000
Charge to profit or loss in respect of defined contribution schemes
-
1
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
21
Deferred income
Group
Company
2024
2023
2024
2023
$000
$000
$000
$000
Other deferred income
3,241
-
3,241
-
22
Share capital
All issued shares, which are dominated in pound sterling and translated at historic spot rates, were fully paid at both 31 March 2024 and 31 March 2023.
At 31 March 2024, the company's issued share capital comprised 1,553 ordinary shares of £0.10 each (2023: 1,553 ordinary shares of £0.10 each and 10 ordinary shares of £1).
Pursuant to an order of the High Court dated 9 May 2023, 10 ordinary shares of £1 ($16) were cancelled and extinguished in the year.
23
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
$000
$000
$000
$000
Within one year
80
72
-
-
Between two and five years
37
34
-
-
117
106
-
-
24
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Services received
Shareholder loans
2024
2023
2024
2023
$000
$000
$000
$000
Group
Other related parties
9,892
11,723
-
-
Company
Other related parties
9,892
11,723
300
-
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
24
Related party transactions
(Continued)
- 34 -
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
$000
$000
Group
Other related parties
4,015
2,387
Company
Other related parties
4,015
2,387
Other information
The company has taken advantage of the exemption conferred by FRS 102 paragraph 33.1A and therefore has not disclosed transactions entered into between the parent company and its wholly owned subsidiary.
25
Contingent liability
The company is authorised to operate in Antarctica under a permit issued by the Foreign, Commonwealth and Development Office of the United Kingdom government. The permit requires that all on-ice assets are removed from Antarctica by the company when its operations there cease.
Whilst this obligation exists at the balance sheet date, in the opinion of the directors, any potential liability is currently unquantifiable due both to the uncertain timing of the withdrawal and the unknown second-hand market for the company's in situ assets at that time.
26
Cash generated from group operations
2024
2023
$000
$000
Profit/(loss) after taxation
1,406
(360)
Adjustments for:
Taxation charged
308
42
Finance costs
21
3
Investment income
(36)
(Gain)/loss on disposal of tangible fixed assets
-
2
Loss on disposal of intangible assets
2
-
Amortisation and impairment of intangible assets
22
15
Depreciation and impairment of tangible fixed assets
1,246
853
Movements in working capital:
Increase in stocks
(209)
(478)
(Increase)/decrease in debtors
(1,740)
960
(Decrease)/increase in creditors
(1,324)
70
Increase in deferred income
3,241
-
Cash generated from operations
2,937
1,107
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
27
Analysis of changes in net debt - group
2024
$000
Opening net funds/(debt)
Cash and cash equivalents
136
Loans
(252)
(116)
Changes in net debt arising from:
Cash flows of the entity
1,959
Changes in market value and exchange rates
(25)
Closing net funds/(debt) as analysed below
1,818
Closing net funds/(debt)
Cash and cash equivalents
2,204
Loans
(386)
1,818
28
Prior period adjustment
In light of the auditors' qualification of their opinion on the prior year's consolidated financial statements, management has undertaken a comprehensive exercise to update the company's fixed asset register, applying an appropriate capitalisation threshold and recalculating the depreciation charge on an asset-by-asset basis. Senior management has subsequently conducted an asset verification exercise in conjunction with the company's new auditors.
The financial statements have been restated to align the prior period with the supporting asset register.
Changes to the balance sheet - group
As previously reported
Adjustment
As restated at 31 Mar 2023
$000
$000
$000
Fixed assets
Other intangibles
-
76
76
Tangible assets
6,043
480
6,523
Current assets
Debtors due within one year
595
(1)
594
Net assets
508
555
1,063
Capital and reserves
Profit and loss reserves
(1,031)
555
(476)
WHITE DESERT LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
28
Prior period adjustment
(Continued)
- 36 -
Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 31 March 2023
$000
$000
$000
Turnover
19,859
1
19,860
Cost of sales
(17,459)
185
(17,274)
Administrative expenses
(3,023)
124
(2,899)
Loss after taxation
(668)
310
(358)
Changes to the balance sheet - company
As previously reported
Adjustment
As restated at 31 Mar 2023
$000
$000
$000
Fixed assets
Other intangibles
-
76
76
Tangible assets
5,970
481
6,451
Current assets
Debtors due within one year
332
(1)
331
Net assets
265
556
821
Capital and reserves
Profit and loss reserves
(1,307)
556
(751)
Changes to the profit and loss account - company
As previously reported
Adjustment
As restated
Period ended 31 March 2023
$000
$000
$000
Turnover
19,788
1
19,789
Cost of sales
(17,451)
185
(17,266)
Administrative expenses
(3,115)
125
(2,990)
Loss after taxation
(781)
311
(470)
29
Controlling party
A majority of the ordinary share capital of the company is held by Sanlam Trustees International Limited as trustee of the Aslan Trust.
In the opinion of the directors, there is no ultimate controlling party.
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