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Registered number: 10344509









MOREL INVESTMENT MANAGEMENT LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
COMPANY INFORMATION


Director
B F Green 




Registered number
10344509



Registered office
3rd Floor, 100-101 Queens Road

Brighton

BN1 3XF




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

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA





 
MOREL INVESTMENT MANAGEMENT LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Director's Report
4 - 5
Independent Auditors' Report
6 - 10
Consolidated Income Statement
11
Consolidated Statement of Comprehensive Income
12
Consolidated Statement of Financial Position
13
Company Statement of Financial Position
14
Consolidated Statement of Changes in Equity
15 - 16
Company Statement of Changes in Equity
17 - 18
Consolidated Statement of Cash Flows
19 - 20
Consolidated Analysis of Net Debt
21
Notes to the Financial Statements
22 - 40


 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

Strategic Report
 
The director presents his annual report of Morel Investment Management Limited (“the Company”) and its subsidiaries ("the Group") for the period ended 31 October 2024.

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

Section 172 (1) Statement
The information provided below is intended to explain how the director considered the interests of the Group’s key stakeholders and the broader matters set out in section 172 (1) (a) to (f) of the Companies Act 2006 when performing his duty to promote the success of the Group under section 172 of the Companies Act 2006.
 

Business Review

The principal activity of the Group is that of an educational tour provider.
The results for the year and financial position of the Group are shown in the financial statements on pages 5 to   34.
The Group was affected by the Covid-19 outbreak, which was declared a pandemic on 11 March 2020.
Since then, events moved rapidly and 2024 is the second year of full operation after nearly 3 years on insignificant travel activity. Following the challenges of 2023, travel in 2024 was more straightforward. During 2024, Equity Inspiring Learning Limited successfully delivered 484 trips whilst ensuring that the safety of our staff and customers remains the highest priority.
In 2023, Equity Inspiring Learning Limited went live with its new booking and reservation system, and this is delivering benefits in terms of improved customer experience and increased efficiencies. This facilitated a restructure of the fixed cost base which has continued into 2024 enabling Equity Inspiring Learning Limited to focus on a variable cost model, improving profitability and cash generation going forward. 

Management Team

The business is led on a day-to-day basis by Sharon Confue (Sales & Marketing Director) and Ian Davis, (Commercial and Operations Director), who have a wealth of experience in travel. They are supported by experienced operators in all areas.

Page 1

 
MOREL INVESTMENT MANAGEMENT LIMITED
 

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

Key performance indicator

The Group continues monitoring a number of KPIs in respect of enquiries, bookings, conversion rates, sales, gross profit and operating cash.
During 2024, Equity Inspiring Learning Limited delivered a positive EBITDAE of £133k (2023: loss £553k) for the first time since pre-covid. This excludes the exceptional costs of £61k (2023: £275k) which relate to the back office restructure following the implementation of the new reservation system.
Based upon confirmed bookings to date, Equity Inspiring Learning Limited will continue to make a positive EBITDA in the 12 months to October 2025.
Travel regulatory bodies:
The Group holds an ATOL granted by the CAA. The Group is also a bonded member of ABTA.
Principal risks and uncertainties:
The risk factors described below are those which the directors believe are potentially significant but should not be regarded as a complete and comprehensive statement of all potential risks and uncertainties facing the Group.
Regulatory risk:
The Group is supported by various regulators, including the Civil Aviation Authority ("CAA"), which issues an Air Travel Organisers Licence ("ATOL"), which is required in order for the Group 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). The Group is also a bonded member of ABTA and renews it's ABTA consumer protection bond in March each year and is subject to assessments of fitness and financial criteria.
We are confident that the various regulators will continue to support the business.
Geo-political events and natural disasters:
The nature of the business operation exposes the Group to a wide range of Geo-political and natural disasters. 
To counter this the Group operates a flexible business model with the ability to shift capacity amongst a variety of destinations where necessary plus it has restructured its operating cost model to remove large fixed cost elements.

Page 2

 
MOREL INVESTMENT MANAGEMENT LIMITED
 

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

 
Commercial relationships:
The Group has well established and close relationships with customers and suppliers and the risk is spread by not placing over-reliance on any one supplier in any particular area. Our supplier base is well spread.
Notwithstanding, if a relationship was lost or damaged with a major supplier this could have an effect on the business. Hence the management team meets regularly with suppliers to maintain good working relationships and to understand the suppliers' financial position.
I
nformation technology:
The Group is reliant upon information technology. Investment has been made to ensure the Group 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 downtime of the selling system in such an event.


This report was approved by the board on 13 March 2025 and signed on its behalf.



................................................
B F Green
Director

Page 3

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

The director presents his report and the financial statements for the year ended 31 October 2024.

Director's responsibilities statement

The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is 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;

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

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006He is 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 director is responsible for the maintenance and integrity of the corporate and financial information included on the Group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Director's Reports may differ from legislation in other jurisdictions.

Principal activity

Morel Investment Management Limited acts as a holding company providing oversight, strategy and treasury services to the wider group.

Results and dividends

The loss for the year, after taxation, amounted to £1,007k (2023 - loss £1,682k).

No dividends were paid or proposed for the period ended 31 October 2024 .

Director

The director who served during the year was:

B F Green 

Page 4

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

he 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 and the Group's auditors are aware of that information.

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 13 March 2025 and signed on its behalf.
 





................................................
B F Green
Director

Page 5

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOREL INVESTMENT MANAGEMENT LIMITED
 

Opinion


We have audited the financial statements of MOREL INVESTMENT MANAGEMENT LIMITED (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 October 2024, which comprise the Consolidated Income Statement, 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 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 Group's and of the parent Company's affairs as at 31 October 2024 and of the Group's 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 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.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 6

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOREL INVESTMENT MANAGEMENT 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 director is 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 Group Strategic Report and the Director's 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 Director's 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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 7

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOREL INVESTMENT MANAGEMENT LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 4, the director is 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 director determines 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 director is responsible for assessing the Group's and 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 8

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOREL INVESTMENT MANAGEMENT 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 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:

- We exercise professional judgement and maintain professional scepticism throughout the audit;
- We identify and assess the risks of material misstatement of the financial statements, whether due to fraud 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 Group's compliance with its regulator, the Civil Aviation Authority ("CAA"), its membership of The Association of British Travel Agents ("ABTA") and its accreditation with the International Air Transport Association ("IATA") and sample test relevant documentation to assess this and the effectiveness of its control environment;
- We review the Group's relationships with related parties, identifying and disclosing transactions during the year and balances at year-end with such parties;
- We conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the entity to cease to continue as a going concern.


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

Page 9

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOREL INVESTMENT MANAGEMENT LIMITED (CONTINUED)



Use of our report
 

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





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

13 March 2025
Page 10

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
Note
£000
£000

  

Turnover
 4 
17,644
17,240

Cost of sales
  
(14,228)
(14,564)

Gross profit
  
3,416
2,676

Administrative expenses
  
(3,810)
(3,591)

Exceptional administrative expenses
  
(61)
(275)

Other operating income
 5 
-
21

Operating loss
 6 
(455)
(1,169)

Interest receivable and similar income
 9 
46
26

Interest payable and similar expenses
 10 
(598)
(637)

Loss before tax
  
(1,007)
(1,780)

Tax on loss
 11 
-
98

Loss for the financial year
  
(1,007)
(1,682)

Loss for the year attributable to:
  

Owners of the parent
  
(1,007)
(1,682)

  
(1,007)
(1,682)

The notes on pages 22 to 40 form part of these financial statements.


Earnings before interest, taxation, depreciation, amortisation and exceptionals (EBITDAE)

2024
2023
£000
£000



Operating loss
(455)
(1,169)

Exceptional costs
61
275

Depreciation
19
13

Amortisation
432
250

57
(631)

Page 11

 
MOREL INVESTMENT MANAGEMENT LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
Note
£000
£000


Loss for the financial year

  

(1,007)
(1,682)

Other comprehensive income
  

Total comprehensive income for the year
  
(1,007)
(1,682)

(Loss) for the year attributable to:
  


Owners of the parent Company
  
(1,007)
(1,682)

  
(1,007)
(1,682)

Total comprehensive income attributable to:
  


Owners of the parent Company
  
(1,007)
(1,682)

  
(1,007)
(1,682)

The notes on pages 22 to 40 form part of these financial statements.

Page 12

 
MOREL INVESTMENT MANAGEMENT LIMITED
REGISTERED NUMBER: 10344509

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2024

2024
2023
Note
£000
£000

Fixed assets
  

Intangible assets
 13 
630
1,015

Tangible assets
 14 
25
27

  
655
1,042

Current assets
  

Debtors: amounts falling due within one year
 16 
1,730
1,672

Cash at bank and in hand
 17 
3,149
2,818

  
4,879
4,490

Creditors: amounts falling due within one year
 18 
(9,743)
(8,738)

Net current liabilities
  
 
 
(4,864)
 
 
(4,248)

Total assets less current liabilities
  
(4,209)
(3,206)

Creditors: amounts falling due after more than one year
 19 
(6,409)
(6,405)

Provisions for liabilities
  

Net liabilities
  
(10,618)
(9,611)


Capital and reserves
  

Called up share capital 
 21 
310
310

Share premium account
 22 
2,180
2,180

Profit and loss account
 22 
(13,108)
(12,101)

  
(10,618)
(9,611)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 March 2025.




................................................
B F Green
Director

The notes on pages 22 to 40 form part of these financial statements.

Page 13

 
MOREL INVESTMENT MANAGEMENT LIMITED
REGISTERED NUMBER: 10344509

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2024

2024
2023
Note
£000
£000

Fixed assets
  

Investments
 15 
300
300

  
300
300

Current assets
  

Debtors: amounts falling due within one year
 16 
2,449
2,449

Cash at bank and in hand
 17 
1
1

  
2,450
2,450

Creditors: amounts falling due within one year
 18 
(514)
(514)

Net current assets
  
 
 
1,936
 
 
1,936

Creditors: amounts falling due after more than one year
 19 
(300)
(300)

Net assets
  
1,936
1,936


Capital and reserves
  

Called up share capital 
 21 
310
310

Share premium account
 22 
2,180
2,180

Profit and loss account carried forward
  
(554)
(554)

  
1,936
1,936


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 March 2025.


................................................
B F Green
Director

The notes on pages 22 to 40 form part of these financial statements.

Page 14

 

 
MOREL INVESTMENT MANAGEMENT LIMITED


 

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



Called up share capital
Share premium account
Profit and loss account
Total equity


£000
£000
£000
£000


At 1 November 2023
310
2,180
(12,101)
(9,611)



Comprehensive income for the year


Loss for the year
-
-
(1,007)
(1,007)

Total comprehensive income for the year
-
-
(1,007)
(1,007)



At 31 October 2024
310
2,180
(13,108)
(10,618)



The notes on pages 22 to 40 form part of these financial statements.

Page 15

 

 
MOREL INVESTMENT MANAGEMENT LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023



Called up share capital
Share premium account
Profit and loss account
Total equity


£000
£000
£000
£000


At 1 November 2022
310
2,180
(10,419)
(7,929)



Comprehensive income for the year


Loss for the year
-
-
(1,682)
(1,682)

Total comprehensive income for the year
-
-
(1,682)
(1,682)



At 31 October 2023
310
2,180
(12,101)
(9,611)



The notes on pages 22 to 40 form part of these financial statements.

Page 16

 
MOREL INVESTMENT MANAGEMENT LIMITED
 

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


Called up share capital
Share premium account
Profit and loss account
Total equity

£000
£000
£000
£000

At 1 November 2023
310
2,180
(554)
1,936


Other comprehensive income for the year
-
-
-
-


At 31 October 2024
310
2,180
(554)
1,936


The notes on pages 22 to 40 form part of these financial statements.

Page 17

 
MOREL INVESTMENT MANAGEMENT LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£000
£000
£000
£000

At 1 November 2022
310
2,180
(554)
1,936


Other comprehensive income for the year
-
-
-
-


At 31 October 2023
310
2,180
(554)
1,936


The notes on pages 22 to 40 form part of these financial statements.

Page 18

 
MOREL INVESTMENT MANAGEMENT LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
£000
£000

Cash flows from operating activities

Loss for the financial year
(1,007)
(1,682)

Adjustments for:

Amortisation of intangible assets
432
250

Depreciation of tangible assets
19
13

Interest paid
598
637

Interest received
(46)
(26)

Taxation charge
-
(98)

(Increase) in debtors
(48)
(84)

Increase in creditors
1,377
727

Net fair value (gains)/losses recognised in P&L
(8)
-

Corporation tax received
-
98

Net cash generated from operating activities

1,317
(165)


Cash flows from investing activities

Purchase of intangible fixed assets
(52)
(25)

Sale of intangible assets
2
-

Purchase of tangible fixed assets
(17)
(13)

Sale of tangible fixed assets
-
2

Interest received
46
26

Net cash from investing activities

(21)
(10)
Page 19

 
MOREL INVESTMENT MANAGEMENT LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024


2024
2023

£000
£000



Cash flows from financing activities

Repayment of loans
(367)
(339)

Repayment of/new finance leases
-
(11)

Interest paid
(598)
(637)

Net cash used in financing activities
(965)
(987)

Net increase/(decrease) in cash and cash equivalents
331
(1,162)

Cash and cash equivalents at beginning of year
2,818
3,980

Cash and cash equivalents at the end of year
3,149
2,818


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,149
2,818

3,149
2,818


The notes on pages 22 to 40 form part of these financial statements.

Page 20

 
MOREL INVESTMENT MANAGEMENT LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 OCTOBER 2024




At 31 October  2023
Cash flows
At 31 October 2024
£000

£000

£000

Cash at bank and in hand

2,818

331

3,149

Debt due after 1 year

(694)

366

(328)

Coronavirus business interruption loan

(367)

-

(367)

Liquid investments

-

-

-


1,757
697
2,454

The notes on pages 22 to 40 form part of these financial statements.

Page 21

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

1.


General information

Morel Investment Management Limited is a private company limited by shares and incorporated in England. Its registered office is 3rd Floor, 100-101 Queens Road, Brighton, BN1 3XF.

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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Income Statement in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Income Statement from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 November 2014.

Page 22

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.3

Going concern

The Group’s management and directors review the financial position and the forecasts for the Company on a regular basis, to ensure they are in a position to react and mitigate the financial impact from any downturn in trading. The directors have made an assessment of the Group’s ability to continue as a going concern, and have considered a number of future scenarios, synthesising key drivers of the Group’s trading performance, including consumer demand, post balance sheet trading, booking trajectory and impact from both financial and geopolitical instabilities. However, economic uncertainty from interest rates and a new UK government means the Company remains in a volatile environment.
As a result, the management of the Group has continued to review the Group's financial position, as well as forecasts, and have planned mitigation actions in order to neutralise any financial impact.
The Group has prepared detailed budgets to 31 October 2026. Additionally, they have also performed a sensitivity analysis on the Group's budgets and forecasts to assess the financial impact of any potential further slowdown in trading from the reforecast and its impact on the liquidity of the business. This sensitivity analysis shows that the Group has sufficient liquidity and cash to trade through a further slowdown.
The budgets reflect compliance with the CAA regulatory requirements as far as the finances for the next licence year to 31 March 2026 are concerned. 
Group management and the directors therefore have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being at least the following 12 months from the signing of these financial statements, and will take all reasonable commercial steps, including seeking further financing or support if required, to mitigate against any further impacts on the Group's ability to continue as a going concern. As a result, the directors believe that it is still appropriate to apply the going concern basis for the foreseeable future.

Page 23

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Group and 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 resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

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

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 
Turnover is the amount derived from ordinary activities and represents the aggregate revenue from tours departed during the year.

 
2.6

Operating leases: the Group as lessee

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

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

Page 24

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.7

Research and development

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

 
2.8

Interest income

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

 
2.9

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.

 
2.10

Borrowing costs

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

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

 
2.12

Taxation

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 and the Group operate and generate income.

Page 25

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.13

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.14

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Income Statement over its useful economic life.

Other intangible assets

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

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

 The estimated useful lives range as follows:

Reservation platform and operating system/ Other software
-
5 and 3 years

 
2.15

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.

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

Depreciation is provided on the following basis:

Fixtures, fittings and equipment
-
33%
Resort equipment
-
33%

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.

Page 26

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

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

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

 
2.17

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.

 
2.18

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 Consolidated 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 Group's cash management.

 
2.19

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.

 
2.20

Financial instruments

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

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

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

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are
Page 27

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)


2.20
Financial instruments (continued)

initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Other financial assets

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

Impairment of financial assets

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

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

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

Financial liabilities

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

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

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the
Page 28

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)


2.20
Financial instruments (continued)

effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

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

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

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group 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 Group 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 Group's contractual obligations expire or are discharged or cancelled.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
a) Critical judgments in applying the Group's accounting policies
The director believes that there are no critical judgments involved in applying the Group's accounting policies that warrant disclosure.
b) Key accounting estimates and assumptions
The director believes that there are no key accounting estimates and assumptions involved in applying the
Group's accounting policies that warrant disclosure.
c) Nature of exceptional items
The director considers that the exceptional items disclosed in these financial statements fall outside the scope of our ordinary activities.

Page 29

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

4.


Turnover

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


2024
2023
£000
£000

Sole activity-tour operator
17,644
17,240

17,644
17,240


Analysis of turnover by country of origin:

2024
2023
£000
£000

United Kingdom
17,644
17,240

17,644
17,240



5.


Other operating income

2024
2023
£000
£000

Other income
-
21

-
21



6.


Operating loss

The operating loss is stated after charging:

2024
2023
£000
£000

Depreciation
19
13

Amortisation
432
250

Exchange differences
50
55

Other operating lease rentals
46
122

Defined contribution pension scheme
38
39

Page 30

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

7.


Auditors' remuneration

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


2024
2023
£000
£000

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
46
42


8.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
2024
2023
£000
£000


Wages and salaries
1,902
1,988

Social security costs
203
204

Cost of defined contribution scheme
38
39

2,143
2,231


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


        2024
        2023
            No.
            No.







Adminstration and Operations
39
55



Sales Staff
28
18

67
73

The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL)

9.


Interest receivable

2024
2023
£000
£000


Other interest receivable
46
26

46
26

Page 31

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

10.


Interest payable and similar expenses

2024
2023
£000
£000


Bank interest payable
228
306

Other loan interest payable
370
331

598
637


11.


Taxation


2024
2023
£000
£000

Corporation tax


Current tax on profits for the year
-
(98)


-
(98)


Total current tax
-
(98)

Deferred tax

Total deferred tax
-
-


Taxation on profit/(loss) on ordinary activities
-
(98)
Page 32

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

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

2024
2023
£000
£000


Loss on ordinary activities before tax
(1,007)
(1,781)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
(252)
(445)

Effects of:


Non-tax deductible amortisation of goodwill and impairment
3
3

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1
5

Capital allowances for year in excess of depreciation
45
(5)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
-
(98)

Unrelieved tax losses carried forward
199
359

Other differences leading to an increase (decrease) in the tax charge
4
83

Total tax charge for the year
-
(98)


12.


Exceptional items

2024
2023
£000
£000


Post-Covid restructuring costs
61
36

Operational disruption costs
-
239

61
275

Page 33

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

13.


Intangible assets

Group and Company





Reservation platform and operating system/Other software
Trademarks
Goodwill
Total

£000
£000
£000
£000



Cost


At 1 November 2023
1,348
1,054
1,636
4,038


Additions
52
-
-
52


Disposals
(2)
-
-
(2)



At 31 October 2024

1,398
1,054
1,636
4,088



Amortisation


At 1 November 2023
373
1,017
1,636
3,026


Charge for the year on owned assets
419
13
-
432



At 31 October 2024

792
1,030
1,636
3,458



Net book value



At 31 October 2024
606
24
-
630



At 31 October 2023
975
37
-
1,012

The expenditure was incurred on a new web-based end-to-end reservations management platform and
other software.



Page 34

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

14.


Tangible fixed assets

Group






Fixtures, fittings & equipments
Office equipment
Total

£000
£000
£000



Cost or valuation


At 1 November 2023
97
7
104


Additions
17
-
17


Disposals
(2)
-
(2)



At 31 October 2024

112
7
119



Depreciation


At 1 November 2023
77
-
77


Charge for the year on owned assets
17
2
19


Disposals
(2)
-
(2)



At 31 October 2024

92
2
94



Net book value



At 31 October 2024
20
5
25



At 31 October 2023
20
7
27

Page 35

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

15.


Fixed asset investments


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Equity Total Travel (Transport) limited- Provision of transport services to immediate parent company
3rd Floor, 100-101 Queens Road, Brighton, BN1 3XF
Ordinary
100%
Skiplan Travel Limited- Educational tour provider
Same as above
Ordinary
100%
STS School Travel Limited- Non-trading company
Same as above
Ordinary
100%
The School Travel Group Limited- Non-trading company
Same as above
Ordinary
100%
Equity Inspiring Learning Limited- Educational tour provider
Same as above
Ordinary
100%
Equity Bidco Limited- Non-trading company
Same as above
Ordinary
100%
STG Travel Group Limited- Non-trading company
Same as above
Ordinary
100%

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

Name
Aggregate of share capital and reserves
Profit/(Loss)
£000
£000

Equity Total Travel (Transport) limited- Provision of transport services to immediate parent company
7,919
-

Skiplan Travel Limited- Educational tour provider
(104)
(78)

STS School Travel Limited- Non-trading company
(12)
-

The School Travel Group Limited- Non-trading company
1
-

Equity Inspiring Learning Limited- Educational tour provider
(11,603)
(548)

Equity Bidco Limited- Non-trading company
-
-

STG Travel Group Limited- Non-trading company
(6,113)
(370)

The financial statements for the year ended 31 October 2024 of Equity Bidco Limited, The School Travel Group Limited, STG Travel Group Limited, Skiplan Travel Limited and STS School Travel Services Limited have been exempted from audit under s479A of Companies Act 2006 by way of parent guarantee from Morel Investment Management Limited.

Page 36

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

16.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000


Amounts owed by group undertakings
-
-
2,449
2,449

Other debtors
137
255
-
-

Prepayments and accrued income
1,585
1,417
-
-

Financial instruments
8
-
-
-

1,730
1,672
2,449
2,449


Included in prepayments and accrued income is the sum of £1,558k (2023: £1,320k) of supplier payments made in advance for departures post 31 October 2024.


17.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Cash at bank and in hand
3,149
2,818
1
1

3,149
2,818
1
1



18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Bank loans
367
367
-
-

Trade creditors
1,276
513
-
-

Amounts owed to group undertakings
-
-
514
514

Other taxation and social security
613
718
-
-

Other creditors
354
463
-
-

Accruals and deferred income
7,133
6,677
-
-

9,743
8,738
514
514


Included in accruals and deferred income is the sum of £6,962k (2023 - £6,012k) of customer monies received in advance for departures post 31 October 2024.

Page 37

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Bank loans
328
694
-
-

Other creditors
6,081
5,711
300
300

6,409
6,405
300
300


Bank loans consist of £500k of Coronavirus Business Interruption Loan and £194k under the Recovery Loan Scheme ("RLS").
The Coronavirus Business Interruption Loan is provided by NatWest Bank and is supported by the Coronavirus Business Interruption Loan Scheme. The loan is for a 72 month term with no capital repayments or interest payments in the first 12 months. Interest is payable at 4.71% per annum over the bank base rate thereafter.
Recovery Loan is a working capital loan provided by Natwest Bank and is supported by the Recovery Loan
Scheme. The loan is for a period of 42 months with no capital repayments or interest payments in the first
6 months. Interest is payable at 5.5% per annum over the bank base rate thereafter.
Other creditors inlcude a £5,781k related party loan. This loan is an unsecured loan owed to Bryan Green, who is the ultimate controlling party. The loan carries an interest rate of 4% per annum above the Bank of England base rate. The interest accrues and will be settled upon repayment of the loan. The loan is redeemable after 31 October 2024. £4,770k of the loan is subject to a subordinated undertaking in favour of the Civil Aviation Authority and cannot be repaid without their prior written consent.          


20.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£000
£000

Amounts falling due within one year

Bank loans
367
367

Amounts falling due 1-2 years

Bank loans
228
367

Amounts falling due 2-5 years

Bank loans
100
328

Amounts falling due after more than 5 years

695
1,062


Page 38

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

21.


Share capital

2024
2023
£000
£000
Allotted, called up and fully paid



3,103,120 (2023 - 3,103,120) Ordinary shares of £0.100 each
310
310



22.


Reserves

Share premium account

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

Profit and loss account

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


23.


Contingent liabilities

As at 31 October 2024, there were contingent liabilities outstanding in respect of counter indemnities given by the Group, in the normal course of business, to the Group's bond obligors in respect of ABTA travel bonds amounting to £1,900k (2023: £1,799k).


24.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group. The pension cost charge represents contributions payable by the Group to the fund and amounted to £38k,(2023: £39k).


25.


Commitments under operating leases

At 31 October 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£000
£000

Not later than 1 year
41
35

Later than 1 year and not later than 5 years
122
162

163
197
Page 39

 
MOREL INVESTMENT MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

26.


Related party transactions

Taumarunui Investment LLP, the ultimate controlling entity charged management fee of £114k ( 2023: £114k).
Mr N Goodwin, a director in the subsidiary company Equity Inspiring Learning Limited provided business consultancy services during the year amounting to £70k (2023: £44k). There was £5k (2023: £5k) due to the related party at the year end included in creditors due within one year.


27.


BSP Outstanding

The Group is accredited with International Air Transport Association ("IATA")  under IATA Code 91274956. As at 31 October 2024 there was no BSP liability outstanding (2023: £Nil).


28.


Holding undertaking

The ultimate holding undertaking is Taumarunui Investment LLP with its registered office at Create Business Hub, Ground Floor, 5 Rayleigh Road, Hutton, Brentwood, Essex CM13 1AB under registered number OC420366.


29.


Controlling party

The ultimate controlling party is Mr Bryan Green by virtue of his controlling interest in Taumarunui Investment LLP.


 
Page 40