Caseware UK (AP4) 2024.0.164 2024.0.164 2024-10-312024-10-31false2023-11-0124false25falsefalse 00886808 2023-11-01 2024-10-31 00886808 2022-11-01 2023-10-31 00886808 2024-10-31 00886808 2023-10-31 00886808 2022-11-01 00886808 1 2023-11-01 2024-10-31 00886808 1 2022-11-01 2023-10-31 00886808 3 2023-11-01 2024-10-31 00886808 3 2022-11-01 2023-10-31 00886808 5 2023-11-01 2024-10-31 00886808 5 2022-11-01 2023-10-31 00886808 6 2023-11-01 2024-10-31 00886808 6 2022-11-01 2023-10-31 00886808 1 2023-11-01 2024-10-31 00886808 e:CompanySecretary1 2023-11-01 2024-10-31 00886808 e:Director1 2023-11-01 2024-10-31 00886808 e:Director3 2023-11-01 2024-10-31 00886808 e:RegisteredOffice 2023-11-01 2024-10-31 00886808 d:Buildings d:LongLeaseholdAssets 2023-11-01 2024-10-31 00886808 d:Buildings d:LongLeaseholdAssets 2024-10-31 00886808 d:Buildings d:LongLeaseholdAssets 2023-10-31 00886808 d:LandBuildings 2024-10-31 00886808 d:LandBuildings 2023-10-31 00886808 d:MotorVehicles 2023-11-01 2024-10-31 00886808 d:MotorVehicles 2024-10-31 00886808 d:MotorVehicles 2023-10-31 00886808 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-11-01 2024-10-31 00886808 d:FurnitureFittings 2023-11-01 2024-10-31 00886808 d:FurnitureFittings 2024-10-31 00886808 d:FurnitureFittings 2023-10-31 00886808 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-11-01 2024-10-31 00886808 d:ComputerEquipment 2023-11-01 2024-10-31 00886808 d:OwnedOrFreeholdAssets 2023-11-01 2024-10-31 00886808 d:CurrentFinancialInstruments 2024-10-31 00886808 d:CurrentFinancialInstruments 2023-10-31 00886808 d:Non-currentFinancialInstruments 2024-10-31 00886808 d:Non-currentFinancialInstruments 2023-10-31 00886808 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2024-10-31 00886808 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-10-31 00886808 d:ReportableOperatingSegment1 2023-11-01 2024-10-31 00886808 d:ReportableOperatingSegment1 2022-11-01 2023-10-31 00886808 d:ShareCapital 2023-11-01 2024-10-31 00886808 d:ShareCapital 2024-10-31 00886808 d:ShareCapital 2022-11-01 2023-10-31 00886808 d:ShareCapital 2023-10-31 00886808 d:ShareCapital 2022-11-01 00886808 d:RevaluationReserve 2023-11-01 2024-10-31 00886808 d:RevaluationReserve 2024-10-31 00886808 d:RevaluationReserve 1 2023-11-01 2024-10-31 00886808 d:RevaluationReserve 6 2023-11-01 2024-10-31 00886808 d:RevaluationReserve 2022-11-01 2023-10-31 00886808 d:RevaluationReserve 2023-10-31 00886808 d:RevaluationReserve 2022-11-01 00886808 d:RevaluationReserve 6 2022-11-01 2023-10-31 00886808 d:ForeignCurrencyTranslationReserve 2023-11-01 2024-10-31 00886808 d:ForeignCurrencyTranslationReserve 2024-10-31 00886808 d:ForeignCurrencyTranslationReserve 1 2023-11-01 2024-10-31 00886808 d:ForeignCurrencyTranslationReserve 2022-11-01 2023-10-31 00886808 d:ForeignCurrencyTranslationReserve 2023-10-31 00886808 d:ForeignCurrencyTranslationReserve 2022-11-01 00886808 d:RetainedEarningsAccumulatedLosses 2023-11-01 2024-10-31 00886808 d:RetainedEarningsAccumulatedLosses 2024-10-31 00886808 d:RetainedEarningsAccumulatedLosses 1 2023-11-01 2024-10-31 00886808 d:RetainedEarningsAccumulatedLosses 2022-11-01 2023-10-31 00886808 d:RetainedEarningsAccumulatedLosses 2023-10-31 00886808 d:RetainedEarningsAccumulatedLosses 2022-11-01 00886808 e:OrdinaryShareClass1 2023-11-01 2024-10-31 00886808 e:OrdinaryShareClass1 2024-10-31 00886808 e:OrdinaryShareClass1 2023-10-31 00886808 e:FRS102 2023-11-01 2024-10-31 00886808 e:Audited 2023-11-01 2024-10-31 00886808 e:FullAccounts 2023-11-01 2024-10-31 00886808 e:PrivateLimitedCompanyLtd 2023-11-01 2024-10-31 00886808 d:CurrentFinancialInstruments 6 2024-10-31 00886808 d:CurrentFinancialInstruments 6 2023-10-31 00886808 2 2023-11-01 2024-10-31 00886808 5 2023-11-01 2024-10-31 00886808 6 2023-11-01 2024-10-31 00886808 9 2023-11-01 2024-10-31 00886808 d:ShareCapital 1 2023-11-01 2024-10-31 00886808 d:AcceleratedTaxDepreciationDeferredTax 2024-10-31 00886808 d:AcceleratedTaxDepreciationDeferredTax 2023-10-31 00886808 d:OtherDeferredTax 2024-10-31 00886808 d:OtherDeferredTax 2023-10-31 00886808 f:PoundSterling 2023-11-01 2024-10-31 00886808 d:RetainedEarningsAccumulatedLosses 6 2023-11-01 2024-10-31 00886808 d:RetainedEarningsAccumulatedLosses 6 2022-11-01 2023-10-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 00886808









BALKAN HOLIDAYS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

 
BALKAN HOLIDAYS LIMITED
 
 
COMPANY INFORMATION


Directors
A Stoyanov 
R V Mineva 




Company secretary
A Stoyanov



Registered number
00886808



Registered office
19 Conduit Street

London

W1S 2BH




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

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA





 
BALKAN HOLIDAYS LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 5
Independent Auditors' Report
6 - 9
Income Statement
10
Statement of Comprehensive Income
11
Statement of Financial Position
12
Statement of Changes in Equity
13
Statement of Cash Flows
14
Analysis of Net Debt
15
Notes to the Financial Statements
16 - 34


 
BALKAN HOLIDAYS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

Introduction
 
The directors present their strategic report of the Company for the year ended 31 October 2024.
The Company is required by the Companies Act 2006 to set out in this report, a fair review of the business of the Company during the financial year ended 31 October 2024, the position of the Company at the end of the period and a description of the principal risks and uncertainties facing the Company. This review is prepared solely to provide additional information to shareholders to assess the Company's strategies and the potential for those strategies to succeed, and the business review should not be relied upon by any other party or for any other purpose.

Business review
 
Due to the constant rising costs of living, inflation and high interest rates both in the UK and Bulgaria, continuous war conflict in Ukraine, lack of government support and proper destination advertising and reduced popularity and awareness of our main destination, all leading to lower demand for holidays to Eastern Europe, the Group faced a challenging year marked by a significant decline in overall holiday market demand throughout the financial year. As a result, these factors negatively affected our business, leading to disappointing net results. In response, the Board of Directors and shareholders took swift and decisive action by implementing substantial changes to the business model for the upcoming year and providing financial support to the Company. The directors believe that the Company is now well positioned for recovery.

Key perfomance indicators

2024
2023
£
£
Turnover

25,910,856

29,097,778
 
Gross profit

41,489

2,327,939
 
Gross profit as a percentage of Turnover

0.16%

8.00%
 
(Loss)/profit on ordinary activities before taxation

(1,985,115)

168,646
 

Page 1

 
BALKAN HOLIDAYS LIMITED
 

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

Principal risks and uncertainties
 
The following risk factors may affect the Company's operating results and its financial position. The risk factors described below are those which the directors believe are potentially significant but should not be regarded as a complete and comprehensive statement of all potential risk and uncertainties facing the Company.
- Regulatory risk: The Company is exposed to various regulators, including the Civil Aviation Authority ("CAA"), which issues an Air Travel Organisers Licence ("ATOL"), which is required in order for the Company to operate. This licence is renewed in March each year and is subject to assessments of fitness and financial criteria, the framework of which is available on the CAA website (www.caa.co.uk).

- Geo-political events and natural disasters: The nature of the business operation exposes the Company to a wide range of Geo-political natural disasters. To counter this the Company operate a flexible business model with the ability to shift capacity amongst a variety of destinations where necessary.
- Commercial relationships: The Company have well established and close relationships with customers and suppliers and the risk is spread by not placing over-reliance on any one supplier in any particular area. However, if a relationship were lost or damaged with a major supplier this could have a detrimental effect on the business. The management team meets regularly with suppliers to maintain good working relationships and to understand the suppliers financial position.
- Information technology: The Company is heavily reliant upon information technology. Investment is being made to ensure the Company has advanced and efficient systems in place, but there is a risk if there were a major failure - particularly if it were to affect selling systems. Procedures are in place to minimise the time a selling system is unavailable in the event of such failure.
- Financial risk: The Company operates in a sector that is exposed to the financial risk caused by the volatility of foreign currency exchange rates. The Company is directly exposed to movements in exchange rates as a large proportion of the travel components it sells are denominated in foreign currency. This risk is managed through the use of hedging.
- Economic conditions: The demand for holidays is affected by local economic conditions. The uncertainty created by events such as the COVID-19 pandemic and the war in Ukraine, and the ensuing volatility in exchange rates and consumer confidence, creates a fragile trading environment. Despite the negative impact of such events, the directors believe that the Company is able to quickly adapt to changes in the local market demand, however a prolonged period of booking slowdown could adversely affect future financial results and liquidity.


This report was approved by the board on 31 March 2025 and signed on its behalf.



A Stoyanov
Director

Page 2

 
BALKAN HOLIDAYS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

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

Directors' responsibilities statement

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

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


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

make judgments and accounting estimates that are reasonable and prudent;

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 Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are also responsible for the maintenance and integrity of the corporate and financial information included on the Company's websites.

Principal activity

The Company's principal activity during the year continued to be that of a tour operator, primarily operating package and independent holidays to Bulgaria. The Company holds an Air Travel Organisers Licence ("ATOL") No.0252 granted by the Civil Aviation Authority, is a member of ABTA and is IATA accredited.
The principal activity of the Company's wholly owned subsidiary, Balkan Holidays Aviation Limited, was previously that of a transport provider to Balkan Holidays Limited under the TOMS VAT Transport Company Scheme. Balkan Holidays Aviation Limited held ATOL No. TRA979298 granted by the Civil Aviation Authority, but the Company was dormant in the previous year and was dissolved at Companies House on 14 November 2023.

Results and dividends

The loss for the year, after taxation, amounted to £1,986,250 (2023 - profit £130,748).

No dividends will be distributed for the year ended 31 October 2024. 

Page 3

 
BALKAN HOLIDAYS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024


Directors

The directors who served during the year were:

A Stoyanov 
R V Mineva 

Future developments

Despite the trading challenges faced throughout the year, Balkan Holidays remains supported by a loyal, committed, and dedicated workforce. In the upcoming accounting period, the directors have reviewed and refined their business model, confident that the new updated business model and approach will drive a full recovery and enhance profitability. The Company has fully overhauled its business model by reducing commitments to charter flying and diversifying the risk with low-cost allocations, while streamlining UK departure airports. For the financial year ending 31 October 2025, the Company is running a scaled-down flying programme to Bulgaria to maximise capacity utilisation and improve load factors. The Group will continue to rely on the support of the retail market and all travel agents in order to boost its retail sales and increase BH brand awareness.

Disclosure of information to auditors

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

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

Post balance sheet events

In March 2025, the Company negotiated a renewal of its bank facility of €4.7 million with its bankers, secured on the long leasehold property owned by the Company, until 31 October 2026. On 19 March 2025 the Company also  obtained a £600k new cash injection by shareholders, a loan subordinated in favour of the Company’s UK regulator, the Civil Aviation Authority (“CAA”), in order to support the renewal of the Company’s Air Travel Organisers Licence (“ATOL”) until 31 March 2026. This subordinated loan cannot be repaid without the CAA’s prior written consent.

Page 4

 
BALKAN HOLIDAYS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024


Auditors

The auditorsWhite Hart Associates (London) Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 31 March 2025 and signed on its behalf.
 





A Stoyanov
Director

Page 5

 
BALKAN HOLIDAYS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BALKAN HOLIDAYS LIMITED
 

Opinion


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


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 October 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Page 6

 
BALKAN HOLIDAYS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BALKAN HOLIDAYS LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
BALKAN HOLIDAYS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BALKAN HOLIDAYS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


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

- We exercise professional judgment and maintain professional scepticism throughout the audit;
- We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the deliberate override of internal control;
- We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control;
- We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made;
- We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
- We review the scope of the Company's compliance with its regulator, the Civil Aviation Authority ("CAA"), and its membership of The Association of British Travel Agents ("ABTA") and sample test relevant documentation to assess this and the effectiveness of its control environment;
- We request and review the minutes of management meetings, and assess any matters identified not already provided for or disclosed that may materially impact the financial statements;
- We review the Company's relationships with related parties, identifying and disclosing transactions during the year and balances at year-end with such parties.


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


Page 8

 
BALKAN HOLIDAYS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BALKAN HOLIDAYS LIMITED (CONTINUED)


Use of our report
 

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





M S Caldicott ACA FCCA CTA (Senior Statutory Auditor)
  
for and on behalf of
White Hart Associates (London) Limited
 
Chartered Accountants and Statutory Auditors
  
2nd Floor, Nucleus House
2 Lower Mortlake Road
Richmond
TW9 2JA

31 March 2025
Page 9

 
BALKAN HOLIDAYS LIMITED
 
 
INCOME STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
25,910,856
29,097,778

Cost of sales
  
(25,869,367)
(26,769,839)

Gross profit
  
41,489
2,327,939

Distribution costs
  
(359,790)
(403,493)

Administrative expenses
  
(1,915,673)
(1,948,405)

Other operating income
 5 
149,338
142,500

Operating (loss)/profit
 6 
(2,084,636)
118,541

Amounts written off investments
  
1,911
-

Interest receivable and similar income
 10 
99,391
53,908

Interest payable and similar expenses
 11 
(1,781)
(3,803)

(Loss)/profit before tax
  
(1,985,115)
168,646

Tax on (loss)/profit
 12 
(1,135)
(37,898)

(Loss)/profit for the financial year
  
(1,986,250)
130,748

The notes on pages 16 to 34 form part of these financial statements.

Page 10

 
BALKAN HOLIDAYS LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
Note
£
£


(Loss)/profit for the financial year

  

(1,986,250)
130,748

Other comprehensive income
  


Unrealised deficit on revaluation of tangible fixed assets
  
(79,390)
(860,182)

Fair value loss - cash flow hedge
  
(60,085)
-

Other comprehensive income for the year
  
(139,475)
(860,182)

Total comprehensive income for the year
  
(2,125,725)
(729,434)

The notes on pages 16 to 34 form part of these financial statements.

Page 11

 
BALKAN HOLIDAYS LIMITED
REGISTERED NUMBER: 00886808

STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
9,554,692
9,654,631

Fixed asset investments
  
-
2,000

  
9,554,692
9,656,631

Current assets
  

Debtors: amounts falling due within one year
 15 
677,155
716,170

Cash at bank and in hand
 16 
2,787,184
2,649,304

  
3,464,339
3,365,474

Creditors: amounts falling due within one year
 17 
(3,899,111)
(3,594,337)

Net current liabilities
  
 
 
(434,772)
 
 
(228,863)

Total assets less current liabilities
  
9,119,920
9,427,768

Creditors: amounts falling due after more than one year
 18 
(2,253,004)
(436,262)

Provisions for liabilities
  

Deferred taxation
 20 
(1,362,588)
(1,361,453)

  
 
 
(1,362,588)
 
 
(1,361,453)

Net assets
  
5,504,328
7,630,053


Capital and reserves
  

Called up share capital 
 21 
687,000
687,000

Revaluation reserve
 22 
7,188,646
7,268,036

Hedging cash flow reserve
 22 
(60,085)
-

Profit and loss account
 22 
(2,311,233)
(324,983)

  
5,504,328
7,630,053


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 March 2025.

A Stoyanov
Director

The notes on pages 16 to 34 form part of these financial statements.

Page 12

 
BALKAN HOLIDAYS LIMITED
 

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


Called up share capital
Revaluation reserve
Hedging cash flow reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 November 2022
687,000
8,128,218
-
(455,731)
8,359,487


Comprehensive income for the year

Profit for the year
-
-
-
130,748
130,748

Revaluation adjustment on leasehold property
-
(860,182)
-
-
(860,182)


Other comprehensive income for the year
-
(860,182)
-
-
(860,182)


Total comprehensive income for the year
-
(860,182)
-
130,748
(729,434)


Total transactions with owners
-
-
-
-
-



At 1 November 2023
687,000
7,268,036
-
(324,983)
7,630,053


Comprehensive income for the year

Loss for the year
-
-
-
(1,986,250)
(1,986,250)

Revaluation adjustment on leasehold property
-
(79,390)
-
-
(79,390)

Fair value loss - cash flow hedge
-
-
(60,085)
-
(60,085)


Other comprehensive income for the year
-
(79,390)
(60,085)
-
(139,475)


Total comprehensive income for the year
-
(79,390)
(60,085)
(1,986,250)
(2,125,725)


Total transactions with owners
-
-
-
-
-


At 31 October 2024
687,000
7,188,646
(60,085)
(2,311,233)
5,504,328


The notes on pages 16 to 34 form part of these financial statements.

Page 13

 
BALKAN HOLIDAYS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(1,986,250)
130,748

Adjustments for:

Depreciation of tangible assets
41,948
57,074

Interest paid
1,781
3,803

Interest received
(99,391)
(53,908)

Taxation charge
1,135
37,898

Decrease in debtors
45,765
123,448

Increase in amounts owed by parent company
(10,661)
-

Increase/(decrease) in creditors
248,600
(1,035,896)

Corporation tax received
-
83,845

Net cash generated from operating activities

(1,757,073)
(652,988)


Cash flows from investing activities

Purchase of tangible fixed assets
(21,399)
(19,098)

Disposal of fixed asset investments
2,000
-

Interest received
99,391
53,908

Net cash from investing activities

79,992
34,810

Cash flows from financing activities

Increase in loans
1,816,742
-

Repayment of loans
-
(550,862)

Interest paid
(1,781)
(3,803)

Net cash used in financing activities
1,814,961
(554,665)

Net increase/(decrease) in cash and cash equivalents
137,880
(1,172,843)

Cash and cash equivalents at beginning of year
2,649,304
3,822,147

Cash and cash equivalents at the end of year
2,787,184
2,649,304


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,787,184
2,649,304

2,787,184
2,649,304


The notes on pages 16 to 34 form part of these financial statements.

Page 14

 
BALKAN HOLIDAYS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 OCTOBER 2024




At 1 November 2023
Cash flows
At 31 October 2024
£

£

£

Cash at bank and in hand

2,649,304

137,880

2,787,184

Debt due after 1 year

(436,262)

(1,816,742)

(2,253,004)


2,213,042
(1,678,862)
534,180

The notes on pages 16 to 34 form part of these financial statements.

Page 15

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

1.


General information

As disclosed in the Directors' Report, the principal activity of the Company in the year under review continued to be that of a tour operator, primarily operating package and independent holidays to Bulgaria. 
The Company is a private company limited by shares and is incorporated in England, with registration number 00886808. The address of the Company's principal place of business, being the same as the registered office stated on the Company Information page, is:
19 Conduit Street
London
W1S 2BH

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Going concern

The Company made pre-tax losses of £1.986 million in the year. However, as at 31 October 2024 the Company had Net Assets of £5.504 million. Given these results, the Company has completely revamped its business model, reducing commitments on rotational flying and holiday accommodation and streamlining UK departure airports. In the years to 31 October 2025 and 31 October 2026, the Company is operating a reduced programme in order to achieve higher utilisation of capacity and increased load factors. This is a significant de-risking of the Company’s business model.
To support this revised business model, management have completed a detailed fully integrated financial budgeting model, including detailed cashflows, which reflects a return to profitability in the year ended 31 October 2026 with manageable losses for the year to 31 October 2025. Management have also negotiated a renewal of its bank facility of €4.7 million with its bankers until 31 October 2026, secured on the long leasehold property owned by the Company. The Company has also obtained, on 19 March 2025, a £600k new cash injection into the Company by shareholders, subordinated in favour of the Company’s UK regulator, the Civil Aviation Authority (“CAA”), a loan needed to support the renewal of the Company’s Air Travel Organisers Licence (“ATOL”). This subordinated loan cannot be repaid without the CAA’s prior written consent.
On the basis of the available liquidity outlined above, and the renewal of the Company’s ATOL to 31 March 2026, the Directors believe the Company to be a going concern and have prepared these financial statements on a going concern basis.
 

Page 16

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Income Statement within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

Turnover

Turnover represents the aggregate amount of gross revenue receivable from inclusive tours, travel agency commissions receivable, cancellation income and other services supplied to customers in the ordinary course of business.
Turnover derived from ordinary activities is recognised in the income statement on holiday departure date and is stated after trade discounts, net of VAT and after any other sales taxes.

 
2.5

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.6

Interest income

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

 
2.7

Finance costs

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

 
2.8

Borrowing costs

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

Page 17

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

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

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

 
2.10

Current and deferred taxation

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

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

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

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


Page 18

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

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

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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

The estimated useful lives range as follows:

Long-term leasehold property
-
over 100 years
Motor vehicles
-
over 3 years
Fixtures and fittings
-
over 5 years
Computer equipment
-
over 5 years

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

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

 
2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

Page 19

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Debtors

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

 
2.15

Cash and cash equivalents

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

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

 
2.16

Creditors

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

 
2.17

Provisions for liabilities

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

Page 20

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.18

Financial instruments

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

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

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

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Other financial assets

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

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

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

Page 21

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)

Financial liabilities

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

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Other financial instruments

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

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

Derecognition of financial assets

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

Derecognition of financial liabilities

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

Page 22

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.19

Hedge accounting

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

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

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, the directors are required to make judgments, 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 estimates are recognised in the period in which the estimates are 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.


4.


Turnover

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


2024
2023
£
£

Tour operator
25,910,856
29,097,778

25,910,856
29,097,778


All turnover arose within the United Kingdom.

Page 23

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

5.


Other operating income

2024
2023
£
£

Operating lease rentals - land and building
142,500
142,500

Foreign exchange gains
6,838
-

149,338
142,500



6.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
121,338
145,423

Exchange differences
(6,838)
761

Defined contribution pension cost
20,573
20,787


7.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
25,500
25,505
Page 24

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

8.


Employees

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


2024
2023
£
£

Wages and salaries
942,419
953,098

Social security costs
101,922
103,380

Cost of defined contribution scheme
20,573
20,787

1,064,914
1,077,265


Included in wages and salaries above are benefits in kind amounting to £3,495 (2023 - £3,580) in relation to directors. The total benefits in kind for all staff amounted to £31,079 (2023 - £30,428).

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


        2024
        2023
            No.
            No.







Administration
13
12



Marketing
3
3



Sales
9
9

25
24


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
90,025
89,306

Company contributions to defined contribution pension schemes
1,321
1,321

91,346
90,627


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.

Included in director's emoluments above are benefits in kind amounting to £3,495 (2023 - £3,580).

Page 25

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

10.


Interest receivable

2024
2023
£
£


Other interest receivable
99,391
53,908

99,391
53,908


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
1,781
3,803

1,781
3,803


12.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
1,135
37,898

Total deferred tax
1,135
37,898


Tax on (loss)/profit
1,135
37,898
Page 26

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - lower than) the standard 'averaged' rate of corporation tax in the UK of 25% (2023 - 22.5%). The differences are explained below:

2024
2023
£
£


(Loss)/profit on ordinary activities before tax
(1,985,115)
168,646


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22.5%)
(496,279)
37,945

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
6,690
(7,033)

Capital allowances for year in excess of depreciation
3,080
7,047

Deferred tax movement
1,135
37,898

Unrelieved tax losses carried forward
486,509
-

Tax losses utilised
-
(37,959)

Total tax charge for the year
1,135
37,898


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 27

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

13.


Tangible fixed assets





Long-term leasehold property
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 November 2023
9,625,000
109,531
394,179
10,128,710


Additions
-
-
21,399
21,399



At 31 October 2024

9,625,000
109,531
415,578
10,150,109



Depreciation


At 1 November 2023
16,042
91,580
366,457
474,079


Charge for the year on owned assets
96,250
11,647
13,441
121,338



At 31 October 2024

112,292
103,227
379,898
595,417



Net book value



At 31 October 2024
9,512,708
6,304
35,680
9,554,692



At 31 October 2023
9,608,958
17,951
27,722
9,654,631




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


2024
2023
£
£

Long leasehold
9,512,708
9,608,958

9,512,708
9,608,958




Page 28

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

           13.Tangible fixed assets (continued)

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2024
2023
£
£



Cost
1,686,032
1,686,032

Accumulated depreciation
543,743
526,883

Net book value
2,229,775
2,212,915

Long leasehold relates to a long lease property. The Company in the main operates from these sole premises, but also sublets part to an unconnected party at full market rental terms. 


14.


Fixed asset investments





Investments in subsidiary companies

£





At 1 November 2023
2,000


Disposals
(2,000)



At 31 October 2024

-






Net book value



At 31 October 2024
-



At 31 October 2023
2,000

The Investment in subsidiary relates to Balkan Holidays Aviation Limited.
Balkan Holidays Aviation Limited did not trade during the year ended 31 October 2024 and was dissolved at Companies House on 14 November 2023.

Page 29

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

15.


Debtors

2024
2023
£
£


Trade debtors
410,540
420,684

Amounts owed by parent undertaking
6,750
-

Other debtors
417
2,083

Prepayments and accrued income
259,448
293,403

677,155
716,170


Included in prepayments and accrued income above are advanced payments made to suppliers for departures after 31 October 2024 amounting to £47,072 (2023: £45,629).


16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
2,787,184
2,649,304

2,787,184
2,649,304



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Payments received on account
2,320,109
2,155,300

Trade creditors
1,312,031
1,092,898

Amounts owed to parent undertaking
-
3,911

Other taxation and social security
59,651
50,711

Other creditors
64,129
75,483

Accruals and deferred income
87,189
216,034

Financial instruments
56,002
-

3,899,111
3,594,337


Page 30

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

18.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
2,253,004
436,262

2,253,004
436,262



19.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£


Amounts falling due after more than one year

Bank loans
2,253,004
436,262


2,253,004
436,262




The loan shown above is a Facility Loan from First Investment Bank AD. The total facility available is €4,700,000 and in March 2025 the Company negotiated a renewal of this facility, secured on the long leasehold property owned by the Company. The interest on the Facility Loan is calculated per annum on the aggregate of the margin and savings-based-interest rate for the Euro applied by the lender on the relevant day, which in any event shall be not less than 4% per annum.

Page 31

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

20.


Deferred taxation




2024
2023


£

£






At beginning of year
(1,361,453)
(1,323,555)


Charged to profit or loss
(1,135)
(37,898)



At end of year
(1,362,588)
(1,361,453)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
4,018
5,153

Revaluation of property
(1,366,606)
(1,366,606)

(1,362,588)
(1,361,453)


21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



687,000 (2023 - 687,000) Ordinary shares of £1.00 each
687,000
687,000

The Ordinary shares of £1.00 each carry full voting rights, full dividend rights and full rights to participation in any capital distribution on winding up.


Page 32

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

22.


Reserves

Revaluation reserve

The revaluation reserve is used to record increases in the fair value of land and buildings and decreases to the extent that such decreases relate to a previous increase on the same asset.
Hedging cash flow reserve
The hedging cash flow reserve represents the effectiveness of the Company's hedging activities at the date of the statement of financial position.

Profit and loss account

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


23.


Contingent liabilities

At 31 October 2024, there were contingent liabilities outstanding in respect of counter indemnities and guarantees given by the Company, in the normal course of business, to the Company's bond obligors in respect of ABTA travel bonds amounting to £62,973 (2023 - £125,000).


24.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £20,573 (2023 - £20,787). Contributions totalling £5,990 (2023 - £4,994) were payable to the fund at the reporting date and are included in creditors.


25.


Commitments under operating leases

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


26.Finance lease commitments

The Company had no hire purchase and finance lease commitments as at the reporting date.

Page 33

 
BALKAN HOLIDAYS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

27.


Post balance sheet events

In March 2025, the Company negotiated a renewal of its bank facility of €4.7 million with its bankers, secured on the long leasehold property owned by the Company, until 31 October 2026. On 19 March 2025 the Company also  obtained a £600k new cash injection by shareholders, a loan subordinated in favour of the Company’s UK regulator, the Civil Aviation Authority (“CAA”), in order to support the renewal of the Company’s Air Travel Organisers Licence (“ATOL”) until 31 March 2026. This subordinated loan cannot be repaid without the CAA’s prior written consent.


28.


Controlling party

The immediate and ultimate parent undertaking is Dotbern Investments Limited, a company registered in Jersey. Its registered office is located c/o Capita Trustees Limited, 12 Castle Street, St Helier, Jersey, JE2 3RT.
In the opinion of the directors, there is no single individual who is the ultimate controlling party of Dotbern Investments Limited. 


29.


Other charges

A charge, created by the Company on 26 May 2021 in favour of First Investment Bank Ad, secured over the company's leasehold property, was registered at Companies House on 2 June 2021.
 
Page 34