REGISTERED NUMBER: 02697756 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

Carlton Leisure (UK) Ltd

Page

Company Information

1

Strategic Report

2

to

4

Report of the Directors

5

to

6

Statement of Directors' Responsibilities

7

Report of the Independent Auditors

8

to

10

Income Statement

11

Other Comprehensive Income

12

Statement of Financial Position

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Statement of Cash Flows

16

to

17

Notes to the Financial Statements

18

to

26

DIRECTORS:

Mr T Thevarajah

Mrs K Thevarajah

Mr K Thavatheva

Mr M Thavatheva

Mr P Thavatheva

SECRETARY:

Mrs K Thevarajah

REGISTERED OFFICE:

362 Rayners Lane

Pinner

Middlesex

HA5 5ED

REGISTERED NUMBER:

02697756 (England and Wales)

SENIOR STATUTORY AUDITOR:

Alan Kaye FCA

AUDITORS:

BBK Partnership

Chartered Accountants

& Statutory Auditors

1 Beauchamp Court

10 Victors Way

Barnet

Hertfordshire

EN5 5TZ

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

In the opinion of the directors the company has a very satisfactory result. Trading was very strong in the year overall and resulted in its best financial performance.

The profit for the year before taxation amounted to £2,675,956 (2023: £2,302,451).

The company retains a positive combined bank balance of £10,009,594 (2023: £14,982,106).

The company continues to have a loyal customer base and strengthened its reputation with its handling of the disruption over the recent years. It has a strong brand, excellent systems and well trained staff.

Trading increased meaningfully in the year compared to the prior year as the industry continues to rebound from disruptions caused by global conflicts and the resulting economic uncertainties. Despite on-going volatility, bookings for future seasons remain ahead of pre-pandemic levels across all booking channels and key performance measures, and website traffic volumes, have all improved. Overall, the Directors are satisfied with the Company's performance.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's principal financial instruments comprise cash, short term deposits and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to fund the company's operation as well as to manage working capital, liquidity and invest surplus funds.

The directors continue to assess the risks facing the company, both the securing of new business and maintaining existing relationship are key to the company's success.

The global geopolitical and economic environment remains challenging for the industry, in particular the impact this has on cost inflation, foreign exchange rates and consumer sentiment. In this context customers value brands which they can depend on, and which deliver choice and flexibility in configuring the right product for them.

Other ongoing challenges are overhead cost control which is kept under regular review by the directors.

The directors of the company meet on a regular basis to evaluate risk exposure and risk appetite. The key risk broadly fall into the following categories:

MARKET

The company monitors the general economic condition of the travel industry. The directors pay attention to these changes and tailor their services and pricing in order to maintain the customer confidence.

COMPETITIVE

The main competitive risks to the company arise from changing customer requirements based on market demand. The company continues to invest in providing qualitative service and by working in partnership with IATA and other travel agents to satisfy their current and future needs.

LEGISLATIVE RISK

On a regular basis the directors review the company legislative risk exposure and ensure that all applicable directions are observed.

FINANCIAL INSTRUMENT RISK

The company has established a risk and financial management framework whose primary objectives are to protect the company from events that hinder the achievements of its performance objectives. The objectives aim to limit undue counterparty exposure, ensure efficient working capital exists and monitor the management of risk at a business unit level.

FUTURE DEVELOPMENTS

The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. With careful focus on new products, as well as continuing review of the state of the market and the activities of competitors, the directors are confident in the company's ability to maintain and build on this position, albeit with cautious growth expectations.

SECTION 172(1) STATEMENT

This statement sets out how the Directors have approached and met their responsibilities under section 172 Companies Act 2006, acting in a way that they consider would most likely promote the long-term success of the Company for the benefit of members.

OUR CLIENTS

Delivering excellent client service is critical to the success of the business. We conduct client satisfaction survey when clients return as part of our regular feedback process. This feedback is taken both in written format and over the telephone. The Directors receive regular feedback from the client survey work to implement service improvements where applicable. This can range from improvements in the client booking process itself to changes in service we offer to our clients while they are in destination.

OUR SUPPLIERS

The company's main suppliers are airlines, tour operators and guides. The suppliers we use deliver the product to our clients so are viewed as an extension of our business thus considered as critical partners. Our product and operational teams are responsible for actively managing our supplier relationships to ensure our high standards of service and conduct. We are fortunate that we have alternative suppliers from most of the products and services we procure which helps us to maintain quality and competitiveness for clients.

The Directors receive regular operational updates as part of board meetings. If any significant development in a key supplier relationship, such as an airline ceasing operations, this is escalated to the board immediately. All key supplier contracts are reviewed on an annual basis by the Directors.

KEY PERFORMANCE INDICATORS

The directors have considered the use of the key performance indicators. The continuous measurement and monitoring of the business performance is a critical element of the management process. In order to provide consistent and comprehensive information the Company use a number of key performance indicators (KPI's) to provide a timely and well-balanced review of the financial performance against predefined targets.

These include the levels of turnover, gross and net profit margins and profitability ratios.

The Company's key and other performance indicators during the period were as follows:

2024

2023

2022

£

£

£

Turnover

77,796

74,517

61,767

Gross profit

4,436

3,982

3,687

Gross profit margin

6%

5%

6%

Operating profit/ (Loss)

2,206

1,912

2,143

Profit/(Loss) for the year

2,676

2,303

2,163

Other key KPI's that demonstrate the level of performance in different parts of the business include:

- Average salary levels

- EBITDA

- Performance against budget and prior year.

The directors are satisfied with the KPI's delivered in the year and is confident that expected performance levels can be maintained for the foreseeable future.

ON BEHALF OF THE BOARD:

Mr T Thevarajah - Director

26 June 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of tour operators and travel agents.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £ 60,000 .

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mr T Thevarajah

Mrs K Thevarajah

Mr K Thavatheva

Mr M Thavatheva

Mr P Thavatheva

FINANCIAL INSTRUMENTS

Treasury operations and financial instruments

The directors have established a risk and financial management framework whose primary objective is to protect the company from events that hinder the achievement of performance objective. The objectives aim to limit the undue counterparty exposure, ensure sufficient working capital and monitor risk at a business unit level.

The company's principal financial instruments during the year comprised of a significant liquid cash holding at bank. The main purpose of these financial instruments is to provide funding for company's operations.

Liquidity risk

The company manages its cash requirements in order to maximise interest income and minimise expenses, whilst ensuring the company has sufficient liquid resources to meet the operation needs of the business.

Interest rate risk

Currently the company's exposure to interest rate risk is minimal.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedure. Trade debtors will be monitored on an ongoing basis and provision may be made for doubtful debts where necessary.

POLITICAL DONATIONS AND EXPENDITURE

The Company made neither political donations nor incurred any political expenditure during the year.

The charitable donations made during the year was £28,504.00 (2023:£12,412).

EMPLOYEES

The company is an equal opportunities employer.

The company maintains close consultation with its employees on matters that are likely to affect their interests and is committed to involving them in the performance and development of the business. Periodic presentations are made to all staff by the directors and at these sessions, questions and issues raised by staff are answered.

ENVIRONMENTAL STATEMENT

The company is deeply committed to worldwide conservation. We believe that the preservation of our natural and cultural heritage is best accomplished through the sustained unification of environmental and economic goals.

Our goal is to provide long-term support for existing natural ecosystems to ensure that human populations, flora and fauna continue to survive and coexist successfully. Our vision includes working together with local people and regional non-government organizations to inspire and develop sound community health and conservation practices and assist in mitigating global climate change.

GOING CONCERN

In light of the current environment, the directors have considered the company's objective, risk management policies, liquidity risk, credit risk, capital management policies and procedures, the nature of its market positioning and its expenditure and cash flow projections. As a result of this review the directors have concluded that the company has adequate and reliable resources to continue to adopt a going concern basis in preparing these financial statements.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, BBK Partnership, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr T Thevarajah - Director

26 June 2025

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 and then apply them consistently;

-	make judgements 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 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Opinion

We have audited the financial statements of Carlton Leisure (UK) Ltd (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page seven, 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 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.

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company's operating sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in the financial statements were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

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 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.

Alan Kaye FCA (Senior Statutory Auditor)

for and on behalf of BBK Partnership

Chartered Accountants

& Statutory Auditors

1 Beauchamp Court

10 Victors Way

Barnet

Hertfordshire

EN5 5TZ

26 June 2025

TURNOVER

3

77,796,245

74,516,672

Cost of sales

(73,360,096

)

(70,534,507

)

GROSS PROFIT

4,436,149

3,982,165

Administrative expenses

(2,230,174

)

(2,069,893

)

OPERATING PROFIT

2,205,975

1,912,272

Interest receivable and similar income

482,361

393,006

2,688,336

2,305,278

Interest payable and similar expenses

5

(12,380

)

(2,827

)

PROFIT BEFORE TAXATION

6

2,675,956

2,302,451

Tax on profit

7

(654,185

)

(522,221

)

PROFIT FOR THE FINANCIAL YEAR

2,021,771

1,780,230

PROFIT FOR THE YEAR

2,021,771

1,780,230

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,021,771

1,780,230

FIXED ASSETS

Tangible assets

10

275,105

179,936

CURRENT ASSETS

Debtors

11

7,965,571

5,030,078

Cash at bank and in hand

10,009,594

14,982,106

17,975,165

20,012,184

CREDITORS

Amounts falling due within one year

12

(6,580,056

)

(10,478,899

)

NET CURRENT ASSETS

11,395,109

9,533,285

TOTAL ASSETS LESS CURRENT LIABILITIES

11,670,214

9,713,221

CREDITORS

Amounts falling due after more than one year

13

(50,000

)

(50,000

)

PROVISIONS FOR LIABILITIES

15

(19,065

)

(23,843

)

NET ASSETS

11,601,149

9,639,378

CAPITAL AND RESERVES

Called up share capital

16

100,000

100,000

Retained earnings

17

11,501,149

9,539,378

SHAREHOLDERS' FUNDS

11,601,149

9,639,378

The financial statements were approved by the Board of Directors and authorised for issue on 26 June 2025 and were signed on its behalf by:

Mr T Thevarajah - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100,000

7,819,148

7,919,148

Changes in equity

Dividends

-

(60,000

)

(60,000

)

Total comprehensive income

-

1,780,230

1,780,230

Balance at 31 December 2023

100,000

9,539,378

9,639,378

Changes in equity

Dividends

-

(60,000

)

(60,000

)

Total comprehensive income

-

2,021,771

2,021,771

Balance at 31 December 2024

100,000

11,501,149

11,601,149

Cash flows from operating activities

Cash generated from operations

1

(3,469,636

)

(610,642

)

Interest paid

(12,380

)

(2,827

)

Tax paid

(517,868

)

(416,371

)

Net cash from operating activities

(3,999,884

)

(1,029,840

)

Cash flows from investing activities

Purchase of tangible fixed assets

(150,756

)

(105,520

)

Interest received

482,361

393,006

Net cash from investing activities

331,605

287,486

Cash flows from financing activities

Amount withdrawn by directors

47,000

47,000

Equity dividends paid

(60,000

)

(60,000

)

Net cash from financing activities

(13,000

)

(13,000

)

Decrease in cash and cash equivalents

(3,681,279

)

(755,354

)

Cash and cash equivalents at beginning of year

2

13,690,873

14,446,227

Cash and cash equivalents at end of year

2

10,009,594

13,690,873

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

Profit before taxation

2,675,956

2,302,451

Depreciation charges

55,587

44,984

Finance costs

12,380

2,827

Finance income

(482,361

)

(393,006

)

2,261,562

1,957,256

Increase in trade and other debtors

(2,945,258

)

(2,355,803

)

Decrease in trade and other creditors

(2,785,940

)

(212,095

)

Cash generated from operations

(3,469,636

)

(610,642

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

10,009,594

14,982,106

Bank overdrafts

-

(1,291,233

)

10,009,594

13,690,873

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

14,982,106

14,446,227

Bank overdrafts

(1,291,233

)

-

13,690,873

14,446,227

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

14,982,106

(4,972,512

)

10,009,594

Bank overdrafts

(1,291,233

)

1,291,233

-

13,690,873

(3,681,279

)

10,009,594

Debt

Debts falling due after 1 year

(50,000

)

-

(50,000

)

(50,000

)

-

(50,000

)

Total

13,640,873

(3,681,279

)

9,959,594

1.	STATUTORY INFORMATION

Carlton Leisure (UK) Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.

Significant judgements and estimates

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of the assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revenue recognition

Revenue is recognised upon the date of the provision of services from booking operations, the principal revenue source being the number of bookings. The directors consider that this is when it is probable that the economic benefits associated with the provision of the service will flow to the entity.

Tangible assets

The directors determine whether there are indicators of impairment on the company's tangible assets. Factors taken into consideration in reaching such a decision include changes in market prices and expected future financial performance of the asset.

Fixtures and fittings

Fixtures and fittings that are used, or that the company proposes to use, for the provision of service that include a significant level of ancillary services, are classified under fixtures and fittings and measured accordingly.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Fixtures and fittings

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In reassessing asset lives and residual value assessments, the directors consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Nominated funds

There is still confusion within the travel industry in which the airlines are inefficiently processing customer refund vouchers. The restrictive time limits on the voucher validity and its offset against future travel has fashioned uncertainty which the company itself is unable to corroborate. As a result the directors have taken decisive action to nominate funds held within the company's bank accounts towards any potential future liabilities.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

The company acts a principal ticketing issuer and turnover is recognised in the period in which the airline ticket is issued and when all of the following conditions are satisfied:

-the amount of turnover can be measured reliably;

-it is probable that the company will receive the consideration due under the contract; and

-the costs incurred and the costs to complete the contract can be measured reliably.

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.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 20% on reducing balance

Computer equipment - 20% on reducing balance

Leasehold property - 25% on reducing balance

Depreciation for the leasehold property has not been accounted for during the year, as it was purchased at year-end.

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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

The company operates a defined benefit plan under the provisions of a Small Self-Administered Pension Scheme (SSAS) for the benefit of the directors. A liability for the company’s obligations under the plan is recognised net of plan assets. The net change in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. The liabilities and assets are only recognised when material and when they will have effect on the understandability of the financial statements. Related deferred taxes are to be recognised upon the acknowledgment of such liabilities as assets.

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Financial instruments

Cash and cash equivalents

Cash and cash equivalents comprises cash on hand and all deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to and insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Accounts payables are classified as current liabilities of the company does not have an unconditional right at the end of the reporting period to refer settlements of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlements for at least twelve months after the reporting date they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Going concern

As part of their assessment of going concern, the directors of the company have considered the liquidity position and funding requirements for at least 12 months from the date of approval of these financial statements. The directors consider it appropriate to prepare the financial statement on a going concern basis.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Provision

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Foreign currency

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.