|
Registered number: 12185384
EMERGING TRAVEL UK LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 SEPTEMBER 2024
|
|
EMERGING TRAVEL UK LIMITED
REGISTERED NUMBER: 12185384
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
Net current assets/(liabilities)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 15 October 2025.
................................................
J Grzycka
|
|
|
The notes on pages 3 to 10 form part of these financial statements.
|
|
EMERGING TRAVEL UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
At 1 October 2022 (unaudited & restated) (note 11)
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
Loss for the year (restated)
|
|
|
|
|
|
|
|
|
|
|
At 1 October 2023 (restated) (note 11)
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 3 to 10 form part of these financial statements.
|
|
|
EMERGING TRAVEL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Emerging Travel UK Limited 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 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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
The directors have prepared the financial statements on the going concern basis, having obtained a signed letter of financial support from the parent company for a period of at least 12 months from the date of signing these financial statements. The directors have also assessed the financial ability of the parent company to be able to provide financial support for a period of at least 12 months from the date of signing these financial statements.
On the basis of the above, the directors consider that it is appropriate to prepare the financial statements on a going concern basis.
|
|
|
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.
Turnover, which arises from the company’s principal activity, represents fair value of consideration received from travel agency activities, after deduction of trade discounts and value added tax.
Turnover derived from online travel reservation services are recognized at a point in time when the company has completed its post-booking services and the guest finishes using the arranged travel services and therefore the revenue is recognised at the check-out date.
|
|
EMERGING TRAVEL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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 balance sheet date in the countries where the Company operates and generates income.
Investments in subsidiaries are measured at cost less accumulated impairment.
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.
|
|
|
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.
|
|
EMERGING TRAVEL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
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.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
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.
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.
|
|
EMERGING TRAVEL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
|
|
Judgments in applying accounting policies and key sources of estimation uncertainty
|
The preparation of financial statements are in conformity with Generally Accepted Accounting Practice
(GAAP) requires management to make estimates and judgements that affect the reported amounts of
assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date
and their reported amounts of revenues and expenses during the period.
Critical judgements
Revenue recognition
The recognition of revenue involves significant judgement in the preparation of the financial statements.
Emerging Travel UK Limited provides online travel reservation services along with post-booking support. Management has assessed the nature and timing of its performance obligations and concluded that revenue should be recognised at the point in time when the guest completes their stay for example, the check-out date.
This timing reflects the completion of all contractual obligations, including post-booking services, and ensures that revenue is recognised in accordance with the principles of FRS 102. It also aligns with the company’s role in the transaction, particularly in the context of assessing whether it acts as an agent.
Critical estimates
Provision for doubtful debts
In prior years, the estimation and recognition of bad debt provisions were considered a critical accounting estimate. The company assessed the recoverable value of trade and other debtors using historical experience, credit ratings, and aging profiles to determine the level of provision required.
However, during the current year, management reassessed the nature of certain debtor balances in light of the agency relationship principles outlined in FRS 102. It was concluded that these balances had been incorrectly recognised in the financial statements, as the company was acting as an agent rather than a principal in those transactions.
This reassessment led to the identification of a material error, and a prior year adjustment has been made to remove the incorrectly recognised trade debtors and associated bad debt provisions. As this correction relates to a misapplication of accounting principles rather than estimation uncertainty, it is no longer considered a critical accounting estimate.
Details of the prior year adjustment are disclosed in the relevant note to the financial statements (note 11).
|
|
The average monthly number of employees, including directors, during the year was 19 (2023 - 13).
|
|
|
EMERGING TRAVEL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
|
|
Investments in subsidiary companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the year, the company disposed of its investments with a carrying value of £8,668.
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMERGING TRAVEL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
|
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings are unsecured, non-interest bearing and repayable on demand.
|
|
|
|
|
|
|
|
Financial assets measured at amortised cost
|
|
|
|
|
Financial assets that are debt instruments measured at amortised cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at amortised cost
|
|
|
|
|
Financial assets measured at amortised cost comprise cash and cash equivalents.
Financial assets that are debt instruments measured at amortised cost comprise trade debtors and amounts owed by group undertakings.
Financial liabilities measured at amortised cost comprise trade creditors and amounts owed to group undertakings.
|
|
|
EMERGING TRAVEL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The Company is acting as an agent and should not recognise the full transaction value as revenue and cost of sales, nor present gross trade debtor and creditor balances for these transactions. The balances should be presented on a net basis, reflecting the commission entitlement. Our conclusion is based on the clear terms of the Agency and Marketing Agreement between the Company ("Agent") and Leaside Services Limited ("Principal"), which establishes an undisclosed agency relationship. The economic substance of this arrangement, governed by the legal form of the contract, is that Leaside is the principal. The Company's role is to facilitate the transaction on its behalf. Therefore, the Company is an agent and should recognise only the commission for its agency services as revenue.
The amounts collected from customers are held on behalf of Leaside and the obligation to remit the collected funds to Leaside does not represent a trade creditor in the traditional sense.
The credit risk (risk of customer non-payment) is retained by Leaside as the principal. Therefore, the write-off of bad debts should be recorded in Leaside Services Ltd., not in Emerging Travel UK Ltd. Therefore, any bad debt write-off related to uncollectible amounts from customers for bookings sourced via Leaside should be recognised by Leaside. Therefore all the adjustments of the correction of these balances are detailed below:
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
EMERGING TRAVEL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
|
|
Prior year adjustment continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a result of removal of bad debt allowance charges in financial year 2021, 2022 and 2023.
|
|
|
Related party transactions
|
|
|
During the year the Company traded with and loaned money to Companies controlled by common Shareholder. The balances outstanding at year was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance owed to Leaside Services Limited
|
|
|
|
|
Balance owed to Emerging Travel Inc
|
|
|
|
|
|
|
|
|
|
Post balance sheet events
|
There have been no significant events affecting the Company since the year end.
Emerging Travel Inc., a Company incorporated in the state of Delaware, are deemed the controlling party by virtue of shareholding.
The auditors' report on the financial statements for the year ended 30 September 2024 was unqualified.
The audit report was signed on 15 October 2025 by Barry Au FCA (Senior Statutory Auditor) on behalf of Wisteria Audit Ltd.
|
|
|