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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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SUNSHINE CRUISE HOLIDAYS LIMITED
COMPANY INFORMATION
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SUNSHINE CRUISE HOLIDAYS LIMITED
CONTENTS
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SUNSHINE CRUISE HOLIDAYS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report of the Company and the Group for the year ended 31 December
2024.
The Group is required by the Companies Act to set out in this report, a fair review of the business of the Group during the financial year ended 31 December 2024, and its position at the end of the year along with a description of the principal risks and uncertainties facing the Group. This review is prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed, and the business review should not be relied upon by any other party or for any other purpose.
The directors consider the results to be satisfactory, especially given the ongoing cost of living crisis in the UK. However, consumer demand remained high despite this, leading to increased bookings and turnover for the year. As a result, the Group is expecting significant growth in future years due to increased capacity. The key performance indicators used by the directors to monitor the progress of the Group are set out below:-
The management of the business and the execution of the Group's strategy are subject to a number of risks.
The key business risks and uncertainties affecting the Group are considered below. - Economic uncertainty - The demand for cruises is affected by local economic conditions. During 2024, rising costs have affected the cost of holiday arrangements and resulted in consumers having less discretionary spending available for travel. However, this has been compensated by the high level of demand for cruise holidays during the year. This, combined with consumer unease in relation to the current economic environment, has meant that Group’s management and the directors have continued to review the Group’s financial position, as well as forecasts, and plan mitigation actions in order to neutralise the potential financial impact on trading performance. - Regulatory risk - The Group is exposed to various regulators, including the Civil Aviation Authority ("CAA") which issues an Air Travel Organisers Licence ("ATOL") which is required in order for the Group to operate. This license is renewed in September each year, with the next renewal being in September 2024, and is subject to assessments of fitness and financial criteria, the framework of which is available on the CAA's website (www.caa.co.uk). The Group operates a trust account to provide full consumer protection for UK ATOL bookings, which is independently and professionally managed by PT Trustees Limited ("PTT").
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SUNSHINE CRUISE HOLIDAYS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Principal risks and uncertainties (continued)
- Supplier failure - The Group is reliant on its suppliers to ensure all elements of the holidays it sells are provided to its customers where the Group has acted as a tour organiser. In the event that a supplier is unable to fill its contractual obligations the Group is liable to provide a suitable alternative or a full refund to the customer. The Group mitigates against this risk by spreading its business over a number of selected suppliers. - Competition - The Group operates in a competitive market particularly around price and product availability. This results in downward pressure on ticket prices and margins. This risk is mitigated by seeking out opportunities to differentiate its product offering by packaging cruises with other holiday elements. The nature of the business exposes the Group to various commercial risks which may affect the trading performance of the Group. These include: - acts of terrorism, particularly in key tourist destinations - epidemics in key tourist destinations which threaten the health of tourists - wars or other international uncertainty which affects air travel - natural disasters in key tourist destinations - weather conditions, both in the UK and key tourist destinations - changes in customer behaviour and preferences - increase in government taxes These factors may affect the Group by causing potential customers to cancel or postpone travel plans, reducing the earnings potential of the Group. The Group seeks to minimise such risks by operating a flexible limited commitment business model with the ability to shift capacity amongst a variety of destinations where necessary. Financial Instrument risk The Group's operations expose it to limited financial risks that include liquidity risk, price risk and foreign exchange rate risk. Given the size of the Group, the responsibility of monitoring financial risk management is managed by the board of directors. - Liquidity risk - The nature of the Group's tour operator business is that expenditure on sales and marketing activities to generate bookings takes place many months prior to the date of departure of the holiday, at which point the Group earns its revenue, and also that the pattern of bookings and departures varies throughout the year. The Group does not borrow externally, and maintains a mixture of cash deposits and inter-company trading balances to ensure that it has sufficient funds available for operations. - Price risk - The Group is exposed to price risk through competitor activities in the cruise markets in which the Group operates. Competitor prices are monitored frequently and appropriate remedial action is taken. Where possible the Group seeks to differentiate its product offering in order to avoid direct price competition. - Foreign exchange risk - The Group is exposed to foreign exchange rate risk when it purchases overseas holiday services in currencies other than British Pounds. Monetary assets and liabilities are translated at the exchange rate prevailing at the statement of financial position date. All exchange gains and losses so arising are taken to the income statement. The Group operates a policy of hedge accounting and, accordingly, bears little risk associated with such foreign exchange movements.
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SUNSHINE CRUISE HOLIDAYS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Section 172 of the Companies Act 2006 sets out the duties of directors when exercising powers and discharging their responsibilities. This report sets out how the directors of the Group have complied with their statutory duties in the reporting period.
The Board During the reporting period, the Board was comprised of two executive directors. The Board has long term considerations at its heart. The intention of the Group is to continue to work towards increasing its share of the cruise holiday market in the UK through a constant focus on its employees, its customers and its suppliers, creating long term and lasting relationships. Discharging its statutory duties The Board recognises that decision making for the long term requires that the interests of various stakeholders be considered including those of employees, customers, suppliers and the wider community in which the Group operates. The Board also recognises, and has regard to, its governance frameworks and high standards of business conduct in managing the affairs of the Group. The Board discharges its duties through: - Having a clear plan of meetings to address the matters that are important to the Group’s long-term health; - Considering the Group’s relationships with employees and continuing to promote a positive company culture through regular communication, transparency and healthy recognition of individual and team achievement; - Providing assurance to customers of the high standards that are instilled in the sales and service teams by taking a proactive client-centric approach; - Promoting a policy of being fair to all suppliers with timely payments of invoices and regular communication and trading updates; - Continuously monitoring the Group’s financial health; and - The governance framework that it puts in place and regularly monitors. The Board is presented with regular board packs and presentations to support it with the information that it needs to discharge its responsibilities. This information includes data in relation to demand, bookings, customer sentiment, supplier relationships, market developments and trends and other information relating to the long term health of the Group. Employee responses to surveys and communication programmes are also considered by the Board. The Board has direct engagement with employees within different functions of the business to help inform its decision making.
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SUNSHINE CRUISE HOLIDAYS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Directors' statement of compliance with duty to promote the success of the Group (continued)
Key board considerations During the course of their discussions, the Board takes account of relevant stakeholder’s views. It has particular regard to the long term objectives of ensuring there is a strong business capable of protecting the interests of sharesholders. In turn, this long term approach is in the interests of customers, suppliers, employees and the wider community.
This report was approved by the board on 28 April 2025 and signed on its behalf.
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SUNSHINE CRUISE HOLIDAYS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are 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 Directors' Reports may differ from legislation in other jurisdictions.
The loss for the year, after taxation, amounted to £166,128 (2023 - loss £1,523,376).
The total distribution of dividends for the year ended 31 December 2024 was £Nil (2023: £Nil). The directors do
not recomend a final dividend.
The directors who served during the year were:
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SUNSHINE CRUISE HOLIDAYS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Group has a culture of continuous improvement through investment in people at all levels within the Group, looking to encourage and develop all members of staff to realise their full potential. Wherever possible, vacancies are filled from within the Group and adequate opportunities for internal promotion are created.
The Group is committed to pursuing equality and diversity in all of its employment activities including recruitment, training, career development and promotion and ensuring there is no bias or discrimination in the treatment of employees. Employees are consulted regularly about changes which may affect them through regular meetings and communications, which are used to ensure that employees are kept up to date with the business performance of their employer and the financial and economic factors affecting the performance of the Group.
The directors are mindful of their statutory duty to act in the way they each consider, in good faith, would be most likely to promote the success of the Group for the benefits of its members as a whole, as set out in our s172(1) statement on page 3 of the Strategic Report. A consideration of the Group’s relationship with wider stakeholders, including suppliers and customers, is also disclosed in the same statement.
The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.
The directors have disclosed additional performance data for the Group in the strategic report which is included within this set of financial statements. This includes a review of the performance of the business and the key performance indicators, as well as the main risks faced by the business.
There have been no significant events affecting the Group since the year end.
During 2025, the Group will continue to operate as outlined in the principal activity note above.
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SUNSHINE CRUISE HOLIDAYS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditors, White Hart Associates (London) Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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SUNSHINE CRUISE HOLIDAYS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED
We have audited the financial statements of Sunshine Cruise Holidays Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 2.3 to the financial statements concerning the Group's ability to continue as a going concern.
As explained in note 2.3, the recovery period following the pandemic has been economically challenging for the cruise industry and the Group, despite strong pent up consumer demand to recommence travelling. Rising costs and inflation have continued to affect the Group’s immediate and projected trading, profitability and liquidity. These economic impacts on the cruise industry and the losses sustained by the Group could jeopardise the Group's ability to continue as a going concern in the medium term. To mitigate this risk, the ultimate parent company, Dreamlines GmbH, raised financial support from shareholders along with substantial German Government-backed subsidies in previous years, however no such grants were received in 2024 and the parent company continued recharging appropriate percentages of shared centralised resources. The parent company has only been recompensed for these cross charges in accordance with the Permitted Payments Schedule (“PPS”) agreed with the Civil Aviation Authority (“CAA”), which maintains the required liquidity coverage for the ring-fenced regulated Group. The Group is subject to a ring-fencing arrangement with the CAA, meaning that any funds that flow out of the Group to other members of the group, including the parent company, must be part of the PPS agreed in advance or with the acquiescence of the CAA prior to payment.
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SUNSHINE CRUISE HOLIDAYS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED (CONTINUED)
Material uncertainty related to going concern (continued)
Dreamlines GmbH has provided financial support to the Group throughout the challenges faced in recent years and has confirmed that no cash will exit the ring-fenced Group in breach of the ring-fencing agreement. Dreamlines GmbH have signed a letter of comfort reflecting this and are committed to providing support to the Group as needed for at least the next 12 months. The financial statements have therefore been prepared on a going concern basis.
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. Our evaluation of the directors' assessment of the Group's ability to continue to adopt the going concern basis of accounting included obtaining and testing the Group's budgets and forecasts for the years ended 31 December 2025 and 31 December 2026, including reviewing the key assumptions behind these from the latest available information, both internal and external; reviewing the continuing steps taken by management to manage liquidity, control current costs, utilise government assistance and raise further finance, reviewing the Group's continued compliance and correspondence with its key regulator, the Civil Aviation Authority (CAA) and assessing any threat to the continuation of its Air Travel Organisers Licence (ATOL); reviewing the minutes of the regular Board meetings and performing an overall assessment of the Group's internal finance function and controls.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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SUNSHINE CRUISE HOLIDAYS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED (CONTINUED)
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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 judgment and maintain professional scepticism throughout the audit;
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SUNSHINE CRUISE HOLIDAYS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements (continued)
- 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 The Package and Linked Travel Arrangements Regulations 2018 ("PTRs") and sample test relevant documentation to assess this and the effectiveness of its control environment; - We request and review the minutes of management meetings, and assess any matters identified not already provided for or disclosed that may materially impact the financial statements; - We review the Group's relationships with related parties and other group companies, 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.
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SUNSHINE CRUISE HOLIDAYS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNSHINE CRUISE HOLIDAYS LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants and Statutory Auditors
2nd Floor, Nucleus House
2 Lower Mortlake Road
Richmond
TW9 2JA
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SUNSHINE CRUISE HOLIDAYS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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SUNSHINE CRUISE HOLIDAYS LIMITED
REGISTERED NUMBER: 03931005
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 April 2025.
The notes on pages 20 to 42 form part of these financial statements.
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SUNSHINE CRUISE HOLIDAYS LIMITED
REGISTERED NUMBER: 03931005
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 20 to 42 form part of these financial statements.
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