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Registered number: 09061889 TRAVELODEAL LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
TRAVELODEAL LIMITED COMPANY INFORMATION
Directors | J Q Bond
| K Bustin
| M Daruwala
| N Mouscos
| P Turner
| C Vickors
Registered number | 09061889
Registered office | 8th Floor Becket House
| 36 Old Jewry
| London
| United Kingdom
| EC2R 8DD
Independent auditors | Xeinadin Audit Limited
| Chartered Accountants & Statutory Auditor
| 8th Floor
| Becket House
| 36 Old Jewry
| London
| EC2R 8DD
TRAVELODEAL LIMITED CONTENTS
| Page
Strategic Report | 1 - 3
Directors' Report | 4 - 5
Independent Auditors' Report | 6 - 9
Statement of Comprehensive Income | 10
Statement of Financial Position | 11
Statement of Changes in Equity | 12
Statement of Cash Flows | 13
Notes to the Financial Statements | 14 - 27
TRAVELODEAL LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
Business review
In 2024, Travelodeal Limited continued its strong growth trajectory, achieving a gross transactional turnover of £34.3 million, representing a 23% increase over 2023. This sustained growth is a direct result of strategic investments in marketing, technology, and global expansion. Administrative expenses increased to £8.1 million, up from £5.9 million in 2023. The rise was largely driven by: -Expanded marketing and advertising spend -Ongoing investment in IT systems and infrastructure -Strategic hiring to support operational scale and market penetration The company remains focused on its transformation to a fully online business by 2026, which is expected to significantly boost efficiency, profitability, and global reach. Market expansion efforts continue, especially in the USA and Canada, with increased hiring in these regions.
Principal risks and uncertainties
Travelodeal remains vigilant regarding geopolitical tensions, economic fluctuations, and natural disasters, as well as shifts in consumer travel behavior. The companys agility in destination planning and diversified product offerings allow it to navigate these challenges with resilience. Principal Risks and Mitigation Travelodeal continues to offer unique, flexible holiday packages, appealing to a wide range of customer needs Mitigation strategies include diversification of destinations and maintaining lean operations Focused efforts on margin control, automation, and direct supplier contracting help contain operational risks Key Performance Indicators
A. Financial KPIs
|  | 2024 | 2023 | 2024
|  | Actual | Actual | Target
Turnover |  | £34,927,856 | £28,311,400 | -
Turnover growth |  | +23.4% | +15.8% | > +25%
Gross profit |  | £8,086,782 | £6,508,384 | -
Gross margin |  | 23.2% | 23.0% | > 22.0%
Average selling price (ASP) |  | £468 | £580 | > £600
Return on marketing spend (RoAS) |  | 5.8x | 5.2x | > 6.0x
Website conversion rate |  | 3.4% | 3.0% | > 3.5%
Notes Turnover growth = (34.93m - 28.31m) / 28.31m = 23.4% Gross margin = 8.09m / 34.93m = 23.2% ASP from booking system; RoAS from ad-platform analytics; Website conversion rate from web analytics.
Page 1
TRAVELODEAL LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
B. Non-Financial KPIs
|  | 2024 | 2023 | 2023
|  | Actual | Actual | Target
Employee retention rate |  | 87% | 82% | > 85%
Average employee performance rating |  | 4.3 / 5 | 4.1 / 5 | > 4.2 / 5
Customer database growth (net new) |  | +45,000 (+30%) | +35,000 (+28%) | +40,000
Email open rate |  | 28% | 25% | > 30%
Net Promoter Score (NPS) |  | 68 | 64 | > 70
Customer satisfaction (Trustpilot) |  | 4.7 / 5 | 4.3 / 5 | > 4.6 / 5
Source: Trustpilot average star ratings, company HR and CRM systems, and survey platforms.
Commercial Relationships Maintaining and expanding strong supplier partnerships continues to be vital for securing: - Exclusive product offerings - Preferred payment terms - Operational flexibility and price competitiveness Information Technology and Digital Transformation A major pillar of 2024 has been Travelodeals ongoing digital transformation, including: - Enhancement of internal systems and automation tools - Website redevelopment to improve UX and conversion rates - Strategic use of social media and digital advertising With the full transition to online expected by 2026, these investments position the company for long-term scalability and operational excellence. Talent Acquisition and Market Expansion The company is aggressively expanding its talent pool to support growth, particularly in the USA and Canada. New hires are strengthening sales, customer service, and marketing capabilities, helping drive customer acquisition, brand visibility, and market share. ATOL and ABTA Licensing Travelodeal retains its ATOL and ABTA licenses, ensuring full consumer protection and compliance with UK travel regulations. This remains a critical trust signal for customers and partners alike. Next Steps 1) Embed KPI dashboards in BI tools with live data feeds from source systems. 2) Conduct Q1 2025 review of performance vs. targets, highlighting key variances. 3) Set 2025 targets informed by FY-24 outcomes, with focus on conversion rate and RoAS improvements. Page 2
TRAVELODEAL LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 This report was approved by the board and signed on its behalf.
................................................ M Daruwala Director
Date: 15 July 2025
Page 3
TRAVELODEAL LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The directors present their report and the financial statements for the year ended 31 December 2024.
Directors' responsibilities statement
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies for the Company's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 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.
Results and dividends
The profit for the year, after taxation, amounted to £933,802 (2023 - £395,021). The Directors do not recommend the payment of a dividend (2023: £Nil).
Directors
The directors who served during the year were:
J Q Bond
K Bustin
M Daruwala
N Mouscos
P Turner (appointed 24 May 2024)
C Vickors (appointed 24 May 2024)
Future developments
The future developments of the Company are discussed in the Strategic report. Page 4
TRAVELODEAL LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
There have been no significant events affecting the Company since the year end.
Auditors
The auditors, Xeinadin Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board and signed on its behalf.
................................................ M Daruwala Director
Date: 15 July 2025
Page 5
TRAVELODEAL LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRAVELODEAL LIMITED
Opinion
We have audited the financial statements of Travelodeal Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Page 6
TRAVELODEAL LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRAVELODEAL LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Page 7
TRAVELODEAL LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRAVELODEAL LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: ∙Enquiry of management and those charged with governance around actual and potential litigation and claims; ∙Reviewing minutes of meetings of meetings of those charged with governance; ∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias ∙Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations; The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Company is subject to laws and regulations that directly affect the financial statements which are FRS 102, Companies Act 2006, including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the Company is subject to many other laws and regulations where the consequence of non compliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation or the loss of the Company's license to operate. We identified the following areas as those most likely to have such an effect: health and safety including data protection laws, money laundering, employment law, ABTA and ATOL compliance recognising the nature of the Company's activities. The audit engagement team identified the risk of management override of controls, Revenue recognitions and valuation of investments as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates applied in the valuation of investments using the assistance of a valuation specialist. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. Page 8
TRAVELODEAL LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRAVELODEAL LIMITED (CONTINUED) We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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 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. Karanjit Gill FCCA (Senior Statutory Auditor) for and on behalf of Xeinadin Audit Limited Chartered Accountants & Statutory Auditor 8th Floor Becket House 36 Old Jewry London EC2R 8DD 15 July 2025 Page 9
TRAVELODEAL LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023
Note | £ | £
Turnover | 4 | 34,837,279 | 28,311,400
Cost of sales |  | (26,841,074) | (21,803,016)
Gross profit |  | 7,996,205 | 6,508,384
Administrative expenses |  | (6,809,820) | (6,002,344)
Operating profit | 5 | 1,186,385 | 506,040
Interest receivable and similar income | 8 | 47,873 | 18,894
Interest payable and similar expenses | 9 | (19) | (64)
Profit before tax |  | 1,234,239 | 524,870
Tax on profit | 10 | (300,437) | (129,849)
Profit for the financial year |  | 933,802 | 395,021
There was no other comprehensive income for 2024 (2023:£NIL).
The notes on pages 14 to 27 form part of these financial statements.
Page 10
TRAVELODEAL LIMITED REGISTERED NUMBER: 09061889 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 11 |  | 10,280 |  | 11,513
Tangible assets | 12 |  | 593 |  | 879
Investments | 13 |  | 8,092 |  | 809
|  |  | 18,965 |  | 13,201
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 14 | 4,346,688 |  | 4,058,354 |
Cash at bank and in hand | 15 | 4,342,802 |  | 2,177,279 |
|  | 8,689,490 |  | 6,235,633 |
Creditors: amounts falling due within one year | 16 | (6,442,854) |  | (4,917,035) |
Net current assets |  |  | 2,246,636 |  | 1,318,598
Total assets less current liabilities |  |  | 2,265,601 |  | 1,331,799
Net assets |  |  | 2,265,601 |  | 1,331,799
Capital and reserves |  |  |  |  |
Called up share capital | 18 |  | 300,000 |  | 300,000
Profit and loss account | 19 |  | 1,965,601 |  | 1,031,799
|  |  | 2,265,601 |  | 1,331,799
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................ M Daruwala
Director
Date: 15 July 2025
The notes on pages 14 to 27 form part of these financial statements. Page 11
TRAVELODEAL LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 January 2023 | 300,000 | 636,778 | 936,778
Profit for the year | - | 395,021 | 395,021
At 1 January 2024 | 300,000 | 1,031,799 | 1,331,799
Profit for the year | - | 933,802 | 933,802
At 31 December 2024 | 300,000 | 1,965,601 | 2,265,601
| The notes on pages 14 to 27 form part of these financial statements.
Page 12
TRAVELODEAL LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
|  |  | 2024 | 2023
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 933,802 | 395,021
Adjustments for: |  |
Amortisation of intangible assets | 1,233 | 822
Depreciation of tangible assets | 286 | 286
Interest paid | 19 | 64
Interest received | (47,873) | (18,894)
Taxation charge | 300,437 | 129,849
(Increase) in debtors | (666,589) | (1,986,618)
Increase in creditors | 1,351,306 | 2,092,410
Corporation tax received/(paid) | 252,331 | (136,462)
Net cash generated from operating activities | 2,124,952 | 476,478
Cash flows from investing activities |  |
Purchase of intangible fixed assets | - | (12,335)
Purchase of tangible fixed assets | - | (666)
Purchase of listed investments | (7,283) | (809)
Interest received | 47,873 | 18,894
Net cash from investing activities | 40,590 | 5,084
Cash flows from financing activities |  |
Interest paid | (19) | (64)
Net cash used in financing activities | (19) | (64)
Net increase in cash and cash equivalents | 2,165,523 | 481,498
Cash and cash equivalents at beginning of year | 2,177,279 | 1,695,781
Cash and cash equivalents at the end of year | 4,342,802 | 2,177,279
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 4,342,802 | 2,177,279
| 4,342,802 | 2,177,279
The notes on pages 14 to 27 form part of these financial statements.
Page 13
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
Travelodeal Limited is a private limited by share capital and registered and domiciled in England and Wales. The address of the Company's registered office is 8th Floor, Becket House, 36 Old Jewry, London, EC2R 8DD. The nature of the Company's operations and its principal activities are set out in the strategic report. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
| 2.2 | Going concern
Based on the strength of the balance sheet and continued support from the directors, the directors are confident that the company will have sufficient funds and cash reserves to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
| 2.3 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses 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 Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. Page 14
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.4 | Revenue
Turnover relates to the sale of flights, hotels, tours and transfers and is recognised through the profit and loss account at the date of booking. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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.
| 2.5 | 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.
| 2.6 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.7 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.8 | Pensions
Pension plan Where the risks of a defined benefit plan are shared between entities under common control, the net defined benefit cost is recognised in the financial statements of the Group entity which is legally responsible for the plan and all other Group entities recognise a cost equal to their contribution payable for the period. Page 15
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.9 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
| 2.10 | 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.
| 2.11 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Page 16
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.11 | Tangible fixed assets (continued)
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:
|  |  |  | Office 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.
| 2.12 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated 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.
| 2.13 | 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.
| 2.14 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
| 2.15 | 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. Page 17
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.16 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.17 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Page 18
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.17 | Financial instruments (continued)
Basic financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based historical experience and other factors that are recognised to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods. The directors are of the view that there are no estimates or assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities. Page 19
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Travel agent activity | 17,687,389 | 18,309,675
| Principal acitivity | 17,149,890 | 10,001,725
|  | 34,837,279 | 28,311,400
Analysis of turnover by country of destination:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| United Kingdom | 34,837,279 | 28,311,400
|  | 34,837,279 | 28,311,400
5. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Exchange differences | (61,732) | 125,088
| Depreciation and amortisation | 1,519 | 1,108
6. | Auditors' remuneration
| During the year, the Company obtained the following services from the Company's auditors:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the Company's auditors for the audit of the Company's financial statements | 12,000 | 12,000
Page 20
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
7. | Employees
| Staff costs were as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Wages and salaries | 137,974 | 140,164
| Social security costs | 27,025 | 30,213
|  | 164,999 | 170,377
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2024 | 2023
|  |  | No. | No.
|  | Administration | 5 | 5
| There were no director emoluments paid in the year (2023: £nil)
8. | Interest receivable
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other interest receivable | 47,873 | 18,894
|  | 47,873 | 18,894
9. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Bank interest payable | 19 | 64
|  | 19 | 64
Page 21
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
10. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 308,950 | 129,849
| Adjustments in respect of previous periods | (8,111) | -
|  | 300,839 | 129,849
| Total current tax | 300,839 | 129,849
| Deferred tax |  |
| Origination and reversal of timing differences | (402) | -
| Total deferred tax | (402) | -
|  | 300,437 | 129,849
| 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 - 22.52%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 1,234,239 | 524,870
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22.52%) | 308,560 | 118,201
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 63 | -
| Adjustments to tax charge in respect of prior periods | (8,111) | -
| Other timing differences leading to an increase (decrease) in taxation | (75) | 11,648
| Total tax charge for the year | 300,437 | 129,849
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 22
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
11. | Intangible assets
|  | Development expenditure
|  | £
| Cost |
| At 1 January 2024 | 12,335
| At 31 December 2024 | 12,335
| Amortisation |
| At 1 January 2024 | 822
| Charge for the year on owned assets | 1,233
| At 31 December 2024 | 2,055
| Net book value |
| At 31 December 2024 | 10,280
| At 31 December 2023 | 11,513
Page 23
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
12. | Tangible fixed assets
|  | Office equipment
|  | £
| Cost or valuation |
| At 1 January 2024 | 1,414
| At 31 December 2024 | 1,414
| Depreciation |
| At 1 January 2024 | 535
| Charge for the year on owned assets | 286
| At 31 December 2024 | 821
| Net book value |
| At 31 December 2024 | 593
| At 31 December 2023 | 879
13. | Fixed asset investments
|  | Listed investments
|  | £
| Cost or valuation |
| At 1 January 2024 | 809
| Additions | 7,283
| At 31 December 2024 | 8,092
Page 24
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
14. | Debtors
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Trade debtors | 2,996,716 | 2,299,833
| Other debtors | 1,273,160 | 1,651,816
| Prepayments and accrued income | 76,410 | 106,705
| Deferred taxation | 402 | -
|  | 4,346,688 | 4,058,354
15. | Cash and cash equivalents
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Cash at bank and in hand | 4,342,802 | 2,177,279
|  | 4,342,802 | 2,177,279
16. | Creditors: Amounts falling due within one year
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Trade creditors | 5,253,368 | 4,214,441
| Corporation tax | 308,950 | 134,436
| Other taxation and social security | 1,234 | 942
| Other creditors | 822,293 | 486,250
| Accruals and deferred income | 57,009 | 80,966
|  | 6,442,854 | 4,917,035
17. | Deferred taxation
|  | 2024
|  | £
| Charged to profit or loss | 402
| At end of year | 402
Page 25
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 17.Deferred taxation (continued)
| The deferred tax asset is made up as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fixed and short term timing differences | 402 | -
|  | 402 | -
18. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 300,000 (2023 - 300,000) Ordinary shares of £1.00 each | 300,000 | 300,000
19. | Reserves
Profit and loss account At the year end distributable reserves amounted to £2,039,016 (2023 : £1,031,799)
20. | Contingent liabilities
The Company currently holds an Air Travel Organisers' Licence ('ATOL') issued by the Civial Aviation Authority ('CAA'). In order to offer air inclusive package holidays, the company requires the annual renewal by the CAA of its ATOL licence. The CAA grants this licence on the basis of meeting agreed financial criteria and renews this in September (effective 1 October) each year. The company has complied with these requirements in previous years. THe directors see no reason why the ATOL licence will not be renewed in September 2025 on substantially the same terms and conditions as currently agreed with the CAA. As at the year end, the Company have an ATOL cash bond of £nil (2023: £682,500), which is included in other debtors. During the year, the Company was a member of the Association of British Travel Agents ('ABTA'). As at the year end, the Company have an ABTA cash bond of £121,797 (2023: £128,192), which was included in other debtors. Page 26
TRAVELODEAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
21. | Pension commitments
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from the those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £8,416 (2023: £8,441). Contributions totalling £1,234 (2023: £942) were payable to the fund at the year end and are included in creditors.
22. | Related party transactions
| The company enters into transactions with Mazda Consultancy Services Private Limited, which is owned by the shareholders of the company M Daruwala and R Daruwala. The level of services provided during the year amounted to £2,020,330 (2023: £1,895,420). There was a balance owed to Mazda Consultancy Services Private Limited of £155,186 (2023: £213,841) at the balance sheet date. The company enters into transactions with Daily Bargain Holiday Pvt Limited, which is owned by the shareholders of the company M Daruwala and R Daruwala. The level of services provided during the year amounted to £317,750 (2023: £437,780). There was a balance owed to Daily Bargain Holiday Pvt Limited of £65,303 (2023: £39,941) at the balance sheet date.
23. | Controlling party
The ultimate controlling party is M Daruwala by virtue of his shareholding.
Page 27