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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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BARRHEAD TRAVEL 2007 LIMITED
COMPANY INFORMATION
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BARRHEAD TRAVEL 2007 LIMITED
CONTENTS
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BARRHEAD TRAVEL 2007 LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report of the company and the group for the year ended 31 December 2024.
The principal activity of the Group is that of a tour operator and travel agent.
As the President of Barrhead Travel, I am pleased to present the 2024 Strategic Report, marking a year that has been the most successful in our company’s history with record-breaking turnover and profits. Demand persisted throughout the year, resulting in each month surpassing 2023 sales and the completion of our order book earlier than anticipated in October. This early completion allowed us to focus on bookings for 2025.
The UK leisure travel market in 2024 experienced robust growth across all seasons. Consistent with industry trends and forecasts, the peak booking season (January and February) witnessed exceptionally high demand, surpassing 2023 levels. The peak booking season extended beyond its usual timeframe, with ongoing appetite for holidays prevalent throughout the year. A notable feature of the 2024 holiday market was the resurgence of late bookings. Adverse weather during key holiday periods, such as Easter, Bank Holidays, and summer, led to an increase in spontaneous getaways. Our data indicates that while customers secured their primary annual holiday earlier than usual, many subsequently booked additional trips later in the year. This trend underscored confidence in the leisure market, reaffirming that consumers prioritize travel for discretionary spending. Despite the industry's and our business's success, several challenges impacted our operations. Geopolitical tensions and ongoing global conflicts, rising costs for consumers and businesses alike, transport strikes, and political changes both domestically and internationally were some of the issues faced by the travel industry this year. As an organisation, our strategy is centred on innovation, with various initiatives and growth plans implemented to address challenges and ensure business stability. Barrhead Travel's agility and ability to respond to global market conditions place us in a strong position to achieve our expansion goals, despite external challenges. Reports from organisations such as Barclays and PwC continue to highlight travel as a top spending priority for consumers, presenting opportunities for us to diversify our product offerings and deliver market-leading experiences to our clients. The expansion of our Product team in 2024 has enabled us to pursue new partnerships and product offerings, particularly in the cruise and Canada sectors. Securing exclusive cruise groups, for example, has provided us with competitive advantages, allowing us to meet our objective of offering unique products to our customers. Our refined approach to cruises has led to significant growth in this sector. Applying a similar strategy to our Canada product, we have leveraged the extensive expertise of our team to negotiate exclusive itineraries hosted by Barrhead Travel, resulting in increased growth in this area. As we enter our 50th year in business, our commitments to our local high street and communities are as resolute today as they were in 1975. The last 12 months has seen further investment in our retail network including four store upgrades in Scotland: Braehead, The Gyle, Newton Mearns, and Glasgow Forge. We recognise that retail is changing and our modern approach to the high street travel agency is not only retaining our existing loyal customers, but it is attracting a newer and younger demographic. Part our retail investment in 2024 included the launch of our new look uniform for customer-facing teams. Featuring twenty-five separate pieces in its collection, it is designed to be mixed and matched for different looks and complete flexibility – further underpinning our commitment to making sure our people can express their diverse personalities and individuality at work.
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BARRHEAD TRAVEL 2007 LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Our retail investment is not limited to our existing locations. At the end of 2024, we opened our third location in Northern Ireland, in the suburb town of Newtownabbey. The Northern Irish market is a key target for further growth as we know that customers are seeking trusted travel agents in their local communities.
Part of our growth strategy incorporates our Brilliant Travel division, home to our Managed Service Travel Partners (MSTPs) and independent home-based agents. During 2024, we significantly grew our homeworking network, onboarded several new MSTPs and provided strategic support for several members to expand their own businesses. The future of the independent travel agent is buoyant, particularly as consumers seek the expertise and financial protection of reputable advisors and our Brilliant Travel division will be central to future expansion plans. Our most important asset at Barrhead Travel is the people and we do not underestimate the role of our colleagues in the success that the business is enjoying. It is therefore more important than ever to focus on a comprehensive programme of investment in development and training. The highlights from 2024 encompass the commencement of our new Development Academy, the continued success of our bespoke apprenticeship programme and the launch of our Menopause Employee Resource Group – ‘Menomates’, to work to destigmatise the menopause, educate our colleagues, and provide signposting for support. As part of this last initiative, we were delighted to host a dedicated event in our Glasgow HQ, led by the UK Government’s first menopause champion, Helen Tomlinson, for a productive discussion on integrating the menopause and women’s health into the workplace. Our mission is to be the best place to work in travel. There is thus no better judge of this than our people, so we were incredibly proud to once again feature in the 100 Best Companies to Work in the UK, moving up 18 positions to place 62nd in the UK listings. This award is based on colleague feedback which indicates that the measures we are putting in place to support our people are being well-received. Listening and acting on colleague feedback is what helps make Barrhead Travel a great place to work and we are looking forward to implementing more ideas through ongoing engagement. As well as people-focused awards, our recognition during 2024 spans a wide range of industry recognition. To name just a few: for the 23rd year running, we took the title of Best Large Agency in Scotland at the esteemed Travel Weekly Agent Achievement Awards and, for the third consecutive year, we were named Best Retail Agent at the UK’s Wave Awards which celebrates cruise success. Finally, as the business enters its 50th year, one of the key things that keeps us grounded as an organisation are the communities in which we operate. For the last five decades, we have been supporting localised initiatives both at home and away through charity events, volunteering and fundraising. We simply wouldn’t exist without our local and global community – which is why we’re passionate about supporting meaningful projects that allow us to give a little back. Charities we’ve supported over the last year include: Dress for Success Glasgow; Cash for Kids; Just a Drop; MacMillan Cancer Support; ABTA Lifeline; Save the Children; Glasgow Children’s Hospital Charity; and Samaritans. Overall, the future is very bright for Barrhead Travel and we are confident that the next 12 months will bring more opportunity for success and growth.
The principal risks and uncertainties affecting the business are economic and geopolitical. The economic uncertainty relates to the economic confidence of our customers which in turn feed through to those in the marketplace. The geopolitical risks capture the global threat of terrorism, conflict, disease, and adverse weather conditions, all of which we monitor in conjunction with ABTA and our suppliers. The impact of which we track through our Order Book and will feed through into our product offering and marketing to ensure a strong value proposition is maintained.
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BARRHEAD TRAVEL 2007 LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors consider the following to be the key performance indicators.
*Reconciliation of Gross Turnover to Reported Turnover included in Note 5 on page 29 of these financial statements
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BARRHEAD TRAVEL 2007 LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors of the company must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 and include a duty to promote the success of the company for the benefit of its members as a whole.
The directors fulfil these duties in the following ways:
∙Employees – the driving force behind our success is our people. We therefore engage with our people through regular business and team meetings, newsletters, and a wide range of training.
∙Suppliers - we are in regular dialogue with our suppliers at a strategic and tactical level, along with hosting an annual supplier conference to strengthen the relationships and knowledge with our managers.
∙Customers – our business is built around the personal service offered by our sales team and the holiday offerings developed in conjunction with our suppliers.
∙Environment - as travel providers, airlines, operators and cruise lines work towards Net Zero goals over the coming decade, we also believe that we have a responsibility to make positive changes and influence customer decision-making when it comes to travel. Our Sustainability Committee represents all areas of our business and is currently working to reduce the carbon footprint of our network, deliver training programmes for colleagues, hold our partners accountable for sustainability actions, and educate our customers. We have created a bespoke training programme for our people to help inform them about the climate crisis and what this means for the travel industry, as we firmly believe that education is key to making positive changes. In partnership with our parent organisation, Internova Travel Group, we offset all our employee business travel. We believe that tourism can be a force for good and we will work with our travel colleagues to ensure that the global travel industry plays its part in protecting the planet.
∙Business conduct - through regular contact and ongoing training in addition to the submission of the required returns, we meet the standards set by the sector regulators.
∙Shareholders – as noted on page 43, the company is 100% owned and controlled by the Internova Holdings, LLC. Our performance is reported and reviewed monthly with our parent company which is also the sole shareholder. The Board will continue to keep engagement methods under review to ensure they remain effective.
This report was approved by the board and signed on its behalf.
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BARRHEAD TRAVEL 2007 LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 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 judgments 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 profit for the year, after taxation, amounted to £1,945,720 (2023 - £4,324,278).
The directors have not proposed the payment of a final dividend (2023: £Nil).
The directors who served during the year are:
The future developments for the Group are covered in the Business Review section of the Strategic Report.
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BARRHEAD TRAVEL 2007 LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Liquidity risk – The group aims to mitigate liquidity risk by managing cash generated by its operations and maintaining significant cash reserves. This is achieved though the preparation and review of detailed cash flow forecasts.
Credit risk – Whilst the group has external debtors, the level of risk is minimised as customers are required to settle balances in advance of departure. Foreign currency risk – The group reviews its foreign currency exposure on an ongoing basis and closely monitors the level of foreign currencies held and changes in exchange rates. The risk is mitigated through the use of forward contracts. Research and development As a tour operator and travel agent, the activity of the business means the group does not engage in research and development activities. The group does however invest in developing systems that support the improved efficiency in the business’ key operations. Branches outside the UK The group does not have any branches outside the UK as defined in section 1046(3) of the Companies Act 2006.
Our most important asset at Barrhead Travel is the people. We do not underestimate the role of our colleagues in the success that the business is enjoying. It is therefore more important than ever to focus on a comprehensive programme of investment in development and training.
We are very proud to have delivered in excess of 30,000 hours of training across our network during 2024 – including webinars, in-person sessions, and independent learning opportunities. Last year also saw the launch of our new Development Academy – encompassing Leadership, Aspiring Leaders, and Mentorship programmes. Every member of our management team is in the process of completing our Leadership programme to ensure consistent standards and best practice across the business. Our ongoing bespoke apprenticeship programme saw further success during 2024 as we welcomed a new intake of young talent. Apprentices are our leaders of tomorrow, which is why we’re providing ongoing investment and increasing placements across our network. We were particularly proud that, in 2024, we had a 100% completion rate from our apprentices with every single one progressing into a full-time position with the business. Complementing our extensive training and development programmes is our resounding commitment to providing wellbeing and wellness support to our colleagues. A healthy and happy workforce is the foundation to a successful business and we’re always looking at new initiatives to support this. Last year, we launched our official Menopause Employee Resource Group – ‘Menomates. The group have been working to destigmatise the menopause, educate our colleagues, and provide signposting for support.
Engagement with suppliers, customers and others have been discussed in the Strategic Report.
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BARRHEAD TRAVEL 2007 LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Quantification and reporting methodology
Electricity usage and combustion of gas has been extracted from combination of our energy broker consumption report for the group in addition to invoices for locations not covered by energy broker. For company vehicles we have calculated the figures above using the recorded mileage. The total kWh has been converted to CO2 equivalent using the appropriate multipliers extracted from the UK Government GHG Conversion Factors for Company Reporting 2024 and 2023.
Intensity measurement
The Intensity Ratio is 0.426 (2023: 0.437), being based on total metric tonnes of CO2e per average monthly number of employees. Measures taken to improve energy efficiency. Our Sustainability Committee represents all areas of our business and is currently working to reduce the carbon footprint of our network, implement training programmes for colleagues, hold our partners accountable for sustainability actions, and educate our customers.
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BARRHEAD TRAVEL 2007 LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Group since the year end.
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 and signed on its behalf.
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BARRHEAD TRAVEL 2007 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL 2007 LIMITED
We have audited the financial statements of Barrhead Travel 2007 Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the 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 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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BARRHEAD TRAVEL 2007 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL 2007 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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BARRHEAD TRAVEL 2007 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL 2007 LIMITED (CONTINUED)
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BARRHEAD TRAVEL 2007 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL 2007 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;
∙Reviewing minutes of meetings of those charged with governance;
∙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;
∙Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations.
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 noncompliance 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: ABTA, IATA and ATOL compliance recognising the nature of the Group’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. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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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BARRHEAD TRAVEL 2007 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARRHEAD TRAVEL 2007 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 Auditors
8th Floor
Becket House
36 Old Jewry
EC2R 8DD
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BARRHEAD TRAVEL 2007 LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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BARRHEAD TRAVEL 2007 LIMITED
REGISTERED NUMBER: SC332161
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 23 to 43 form part of these financial statements.
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BARRHEAD TRAVEL 2007 LIMITED
REGISTERED NUMBER: SC332161
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 23 to 43 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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