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Registered number: 05425421 VIVID SKIES LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
VIVID SKIES LIMITED COMPANY INFORMATION
Directors | M G Collins
| Ms J Collins
| D A Hennessy
| B D Sargent
| A P Stafford
Company secretary | Ms J Collins
Registered number | 05425421
Registered office | 2nd Floor, Nucleus House
| 2 Lower Mortlake Road
| Richmond
| TW9 2JA
Independent auditors | White Hart Associates (London) Limited
| Chartered Accountants and Statutory Auditors
| 2nd Floor, Nucleus House
| 2 Lower Mortlake Road
| Richmond
| TW9 2JA
Solicitors | Irwin Mitchell LLP
| Belmont House
| Station Way
| Crawley
| RH10 1JA
VIVID SKIES LIMITED CONTENTS
| Page
Group Strategic Report | 1 - 3
Directors' Report | 4 - 6
Independent Auditors' Report | 7 - 10
Consolidated Statement of Comprehensive Income | 11
Consolidated Statement of Financial Position | 12
Company Statement of Financial Position | 13
Consolidated Statement of Changes in Equity | 14
Company Statement of Changes in Equity | 15
Consolidated Statement of Cash Flows | 16
Consolidated Analysis of Net Debt | 17
Notes to the Financial Statements | 18 - 40
VIVID SKIES LIMITED GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 OCTOBER 2025
Introduction
The directors present their strategic report of the Company and the Group for the year ended 31 October 2025.
Business review
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 October 2025, 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 results for the year and financial position of the Group are as shown in the annexed financial statements. We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face. The year to 31 October 2025 has been particularly challenging for sales to North America. The Group’s largest destination for holiday makers is the United States. Throughout the year, the country has been front and centre of the news with a variety of geo-political events being reported on or perceived to be negative. This has led to a significant decline in demand of around one third from our customers, being the mature affluent adventurer, ultimately resulting in a drop in sales. Sales to North America reported a decline well in excess of £2m on our previous two years. In recognition of the reliance on the USA as a destination, the board embarked on a M&A strategy to seek expansion, aiming to spread destination risk and increase core tailor-made higher margin destinations. An exceptional cost of £82,000 has been charged to the accounts this year for costs involved in aborted activities, however the Group achieved success in December 2025 investing in the Embrace Travel Group. The group contains two Tour Operators, Prestige Travel and Tribes Travel with a combined turnover of £20m. The directors consider the results to be satisfactory given the challenges presented by economic uncertainty resulting from various geo-political conflicts and general rising costs. The key performance indicators used by the directors to monitor the progress of the Group are set out below, being those that communicate the financial performance and strength of the Group, these being turnover, gross margin, overall profitability and cashflows:-
|  | 2025 | 2024
|  | £ | £
| Turnover | 32,319,330 | 35,325,683
| Gross profit | 5,182,180 | 5,544,078
| Gross profit as a percentage of turnover | 16.03% | 15.69%
| Profit on ordinary activities before taxation | 271,036 | 913,971
| Profit on ordinary activities as a percentage of turnover | 0.84% | 2.59%
| Underlying Earnings Before Interest, Taxes, Depreciation and Amortisation (Underlying EBITDA) | 407,237 | 916,386
| Net cash (outflow)/inflow from operating activities | (649,055) | 1,727,776
| Net assets | 3,314,422 | 3,087,746
Page 1
VIVID SKIES LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2025
Principal risks and uncertainties
The following risk factors may affect the Group's operating results and its financial position. The risk factors described below are those which the directors believe are potentially significant but should not be regarded as a complete and comprehensive statement of all potential risk and uncertainties facing the Group. Economic environment risks The demand for holidays is affected by local economic conditions. During 2025, geo-political wars and tensions have affected the cost of holiday arrangements and resulted in consumers having less discretionary spending available for holidays travel. However, due to the customer goodwill built up in recent years, the Group is continuing to see high levels of consumer demand. Consequently, the 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 any potential financial impacts on future trading performance. Market risk The Group operates in a highly competitive market featuring innovation in travel products and the methods by which they are marketed, as well as price pressures. The Group seeks to constantly invest in its brand to increase public awareness as well as offer a wide selection of products from a wide range of suppliers at competitive prices to maintain its market position. The Group also monitors competitor activity closely. Regulatory risk The Group is exposed to various regulators, including the Civil Aviation Authority ("CAA") and the Irish Aviation Authority ("IAA"), who issue an Air Travel Organisers Licence ("ATOL") and a Travel Agent Licence respectively. These are required in order for the Group to operate. The ATOL licence is renewed in March each year, whilst the IAA Travel Agent Licence is renewed in November each year. Both licences are subject to assessments of fitness and financial criteria, the frameworks of which are available on the CAA website (www.caa.co.uk) and the IAA website (www.iaa.ie). Foreign exchange risk The Group faces transactional exposure primarily relating to the cost of acquiring accommodation. This risk is managed by forward buying foreign exchange to match requirements as they are generated by customer bookings. Commercial relationships The Group has well established and close relationships with customers and travel component suppliers and risk is spread by not placing over-reliance on any one supplier in any particular area. However, if a relationship were lost or damaged with a major supplier this could have a detrimental effect on the business. The management team meets regularly with suppliers to maintain good working relationships and to understand the supplier's financial position. Systems risk The Group is heavily reliant on the uninterrupted operation of its IT systems and website. These systems are vulnerable to power loss, fire, computer viruses and other events. Loss of these systems would impair the ability of the Group to carry on its business effectively. The Group has made arrangements to mitigate this risk. Page 2
VIVID SKIES LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2025 Principal risks and uncertainties (continued) Financial risk The Group finances its operations through retained profits. Commercial risk 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 - 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 and limited-commitment business model with the ability to shift capacity among a variety of destinations where necessary, whilst ensuring fixed overheads are kept at an optimum level. This report was approved by the board on 30 January 2026 and signed on its behalf.
M G Collins Director
Page 3
VIVID SKIES LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 OCTOBER 2025 The directors present their report and the financial statements for the year ended 31 October 2025.
Directors' responsibilities statement
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. 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 the Group and of the profit or loss of the Group for that period. 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.
Principal activity
The principal activity of the Company in the year under review was that of a holding company. The Company's two 100% owned trading subsidiaries, Tropical Sky Limited (UK) and Tropical Sky Limited (Ireland), are both travel companies, acting as travel agents and tour organisers. Page 4
VIVID SKIES LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2025
Results and dividends
The profit for the year, after taxation, amounted to £186,022 (2024 - £707,453). The directors do not recommend a final dividend to be paid for the year. The total distribution of dividends for the year ended 31 October 2025 will be £Nil (2024 - £Nil).
Directors
The directors who served during the year were:
M G Collins
Ms J Collins
D A Hennessy
B D Sargent
A P Stafford
Future developments
During the forthcoming accounting period, the directors aim to maintain the management policies which protected the Group's trade during recent shifts in the economy and will continue to do so during the current economic environment. The Group aims to increase on-line sales and diversify product and sales according to the market trends.
Research and development activities
The Group's growth requires investment in cutting edge technology and the ability to deliver fast, innovative and effective search results for consumers in a market that has seen significant technological advances in recent years. During the year the Group continued to make significant investment into software development as well as working on bridging software to improve the efficiency of its internal booking reservation and other systems.
Matters covered in the Group Strategic Report
The directors have disclosed, in line with the Companies Act 2006, 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.
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 and the Group'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 and the Group's auditors are aware of that information. Page 5
VIVID SKIES LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2025
Post balance sheet events
There have been no other significant events affecting the Group since the year end. During 2026, the Group will continue to operate as outlined in the principal activity note above.
Auditors
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 30 January 2026 and signed on its behalf.
M G Collins Director
Page 6
VIVID SKIES LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIVID SKIES LIMITED
Opinion
We have audited the financial statements of Vivid Skies Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 October 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Analysis of Net Debt, 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). In our opinion the financial statements: ∙give a true and fair view of the state of the Group's and of the Parent Company's affairs as at 31 October 2025 and of the Group's 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 Group's or the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Page 7
VIVID SKIES LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIVID SKIES 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 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or ∙the Parent Company financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of 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 Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. Page 8
VIVID SKIES LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIVID SKIES LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - We exercise professional judgment and maintain professional skepticism throughout the audit; - We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the deliberate override of internal control; - We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control; - We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made; - We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business; - We review the scope of the Group's compliance with 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, identifying and disclosing transactions during the year and balances at year-end with such parties; A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. Page 9
VIVID SKIES LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIVID SKIES LIMITED (CONTINUED)
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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. M S Caldicott ACA FCCA CTA (Senior Statutory Auditor) for and on behalf of White Hart Associates (London) Limited Chartered Accountants and Statutory Auditors 2nd Floor, Nucleus House 2 Lower Mortlake Road Richmond TW9 2JA 30 January 2026 Page 10
VIVID SKIES LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2025
| 2025 | 2024
Note | £ | £
Turnover | 4 | 32,319,330 | 35,325,683
Cost of sales |  | (27,137,150) | (29,781,605)
Gross profit |  | 5,182,180 | 5,544,078
Marketing costs |  | (493,893) | (273,280)
Administrative expenses |  | (4,505,110) | (4,589,472)
Exceptional administrative expenses |  | (81,987) | -
Other operating income | 5 | 3,396 | 4,889
Operating profit | 6 | 104,586 | 686,215
Interest receivable and similar income | 10 | 177,104 | 264,950
Interest payable and similar expenses | 11 | (10,654) | (37,194)
Profit before taxation |  | 271,036 | 913,971
Tax on profit | 12 | (85,014) | (206,518)
Profit for the financial year |  | 186,022 | 707,453
Currency translation differences on revaluation of reserves |  | 32,249 | (21,143)
Movement in unrealised foreign exchange reserve |  | 8,405 | (5,296)
Other comprehensive income for the year |  | 40,654 | (26,439)
Total comprehensive income for the year |  | 226,676 | 681,014
Profit for the year attributable to: |  |  |
Owners of the Parent Company |  | 186,022 | 707,453
Total comprehensive income for the year attributable to: |  |  |
Owners of the Parent Company |  | 226,676 | 681,014
The notes on pages 18 to 40 form part of these financial statements.
Page 11
VIVID SKIES LIMITED REGISTERED NUMBER: 05425421 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 16 |  | 708,830 |  | 396,778
|  |  | 708,830 |  | 396,778
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 18 | 9,994,568 |  | 9,256,966 |
Cash at bank and in hand | 19 | 8,677,785 |  | 10,173,147 |
|  | 18,672,353 |  | 19,430,113 |
Creditors: amounts falling due within one year | 20 | (15,967,768) |  | (16,655,812) |
Net current assets |  |  | 2,704,585 |  | 2,774,301
Total assets less current liabilities |  |  | 3,413,415 |  | 3,171,079
Creditors: amounts falling due after more than one year | 21 |  | (6,588) |  | (60,953)
Provisions for liabilities |  |  |  |  |
Deferred taxation | 23 | (92,405) |  | (22,380) |
|  |  | (92,405) |  | (22,380)
Net assets |  |  | 3,314,422 |  | 3,087,746
Capital and reserves |  |  |  |  |
Called up share capital | 24 |  | 128,650 |  | 128,650
Share premium account | 25 |  | 670,880 |  | 670,880
Capital redemption reserve | 25 |  | 15,000 |  | 15,000
Foreign exchange reserve | 25 |  | 13,210 |  | 4,805
Profit and loss account | 25 |  | 2,486,682 |  | 2,268,411
Equity attributable to owners of the Parent Company |  |  | 3,314,422 |  | 3,087,746
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 January 2026.
M G Collins | Ms J Collins
Director | Director
The notes on pages 18 to 40 form part of these financial statements. Page 12
VIVID SKIES LIMITED REGISTERED NUMBER: 05425421 COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Investments | 17 |  | 244,827 |  | 244,827
|  |  | 244,827 |  | 244,827
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 18 | 671,074 |  | 671,074 |
|  | 671,074 |  | 671,074 |
Creditors: amounts falling due within one year | 20 | (82,371) |  | (82,371) |
Net current assets |  |  | 588,703 |  | 588,703
Total assets less current liabilities |  |  | 833,530 |  | 833,530
Net assets |  |  | 833,530 |  | 833,530
Capital and reserves |  |  |  |  |
Called up share capital | 24 |  | 128,650 |  | 128,650
Share premium account | 25 |  | 670,880 |  | 670,880
Capital redemption reserve | 25 |  | 15,000 |  | 15,000
Profit and loss account brought forward |  | 19,000 |  | (31,000) |
Profit for the year |  | - |  | 50,000 |
Profit and loss account carried forward |  |  | 19,000 |  | 19,000
|  |  | 833,530 |  | 833,530
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 January 2026.
M G Collins | Ms J Collins
Director | Director
The notes on pages 18 to 40 form part of these financial statements. Page 13
VIVID SKIES LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 OCTOBER 2025
| Called up share capital | Share premium account | Capital redemption reserve | Foreign exchange reserve | Profit and loss account | Total equity
| £ | £ | £ | £ | £ | £
At 1 November 2023 | 128,650 | 670,880 | 15,000 | 10,101 | 1,582,101 | 2,406,732
Comprehensive income for the year |  |  |  |  |  |
Profit for the year | - | - | - | - | 707,453 | 707,453
Currency translation differences | - | - | - | - | (21,143) | (21,143)
Movement in unrealised foreign exchange reserve | - | - | - | (5,296) | - | (5,296)
Total comprehensive income for the year | - | - | - | (5,296) | 686,310 | 681,014
At 1 November 2024 | 128,650 | 670,880 | 15,000 | 4,805 | 2,268,411 | 3,087,746
Comprehensive income for the year |  |  |  |  |  |
Profit for the year | - | - | - | - | 186,022 | 186,022
Currency translation differences | - | - | - | - | 32,249 | 32,249
Movement in unrealised foreign exchange reserve | - | - | - | 8,405 | - | 8,405
Total comprehensive income for the year | - | - | - | 8,405 | 218,271 | 226,676
At 31 October 2025 | 128,650 | 670,880 | 15,000 | 13,210 | 2,486,682 | 3,314,422
| The notes on pages 18 to 40 form part of these financial statements.
Page 14
VIVID SKIES LIMITED COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 OCTOBER 2025
| Called up share capital | Share premium account | Capital redemption reserve | Profit and loss account | Total equity
| £ | £ | £ | £ | £
At 1 November 2023 | 128,650 | 670,880 | 15,000 | (31,000) | 783,530
Comprehensive income for the year |  |  |  |  |
Profit for the year | - | - | - | 50,000 | 50,000
At 1 November 2024 | 128,650 | 670,880 | 15,000 | 19,000 | 833,530
Comprehensive income for the year |  |  |  |  |
Profit for the year | - | - | - | - | -
At 31 October 2025 | 128,650 | 670,880 | 15,000 | 19,000 | 833,530
| The notes on pages 18 to 40 form part of these financial statements.
Page 15
VIVID SKIES LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2025
|  |  | 2025 | 2024
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 186,022 | 707,453
Adjustments for: |  |
Amortisation of intangible assets | - | 7,500
Depreciation of tangible assets | 220,664 | 222,671
Loss on disposal of tangible assets | - | 1,313
Taxation charge | 85,014 | 206,518
(Increase) in debtors | (681,331) | (730,252)
(Decrease)/increase in creditors | (198,810) | 1,263,269
Net fair value (gains)/losses recognised in P&L | (63,567) | 49,304
Corporation tax (paid)/received | (197,047) | -
Net cash generated from operating activities | (649,055) | 1,727,776
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (522,170) | (189,476)
Sale of tangible fixed assets | - | 7,916
Net cash from investing activities | (522,170) | (181,560)
Cash flows from financing activities |  |
Repayment of loans | (324,137) | (332,651)
Net cash used in financing activities | (324,137) | (332,651)
Net (decrease)/increase in cash and cash equivalents | (1,495,362) | 1,213,565
Cash and cash equivalents at beginning of year | 10,173,147 | 8,959,582
Cash and cash equivalents at the end of year | 8,677,785 | 10,173,147
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 8,677,785 | 10,173,147
The notes on pages 18 to 40 form part of these financial statements.
Page 16
VIVID SKIES LIMITED CONSOLIDATED ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 OCTOBER 2025
| At 1 November 2024 | Cash flows | Other non-cash changes | At 31 October 2025
| £ | £ | £ | £
Cash at bank and in hand | 10,173,147 | (1,495,362) | - | 8,677,785
Debt due after 1 year | (60,953) | 54,365 | - | (6,588)
Debt due within 1 year | (327,240) | 269,772 | - | (57,468)
Derivative assets | 8,649 | - | 56,271 | 64,920
| 9,793,603 | (1,171,225) | 56,271 | 8,678,649
The notes on pages 18 to 40 form part of these financial statements.
Page 17
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
1. | General information
As disclosed in the Directors' Report, the principal activity of the Company in the year under review was that of a holding company. The Company's two 100% owned trading subsidiaries, Tropical Sky Limited (UK) and Tropical Sky Limited (Ireland), are both travel companies, acting as tour operators and travel agents. The Company is a private company limited by shares and is incorporated in England. The address of the Company's and Group's principal place of business, being different to the registered office stated on the Company Information page, is: Tropical House Garland Road East Grinstead RH19 1NJ 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The following principal accounting policies have been applied:
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 November 2015. Page 18
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025 2.Accounting policies (continued)
| 2.3 | Going concern
The travel industry has experienced large shifts in demand for holiday travel over recent years. There is currently some consumer unease in relation to the current economic environment, with increasing energy costs, interest rates and inflation reducing the discretionary spending available to consumers, and geo-political conflicts discouraging travel to certain destinations. As a result, Group management and the directors have continued to review the Group’s financial position, as well as budgets and forecasts and plan mitigation actions in order to neutralise any financial impacts. Additionally, they have also performed a sensitivity analysis on the Group's budgets and forecasts to assess the financial impact of any potential further slowdown in trading from the reforecast and its impact on the liquidity of the business. This sensitivity analysis shows that the Group has enough liquidity and cash to trade through a further slowdown. Group management and the directors therefore have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being at least the following 12 months from the signing of these financial statements, and will take all reasonably commercial steps, including seeking further financing or support if required, to mitigate against any further impacts on the Group's ability to continue as a going concern. As a result, the directors believe that it is still appropriate to apply the going concern basis for the foreseeable future.
| 2.4 | Foreign currency translation
Functional and presentation currency The Group's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated 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'. On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income. Page 19
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025 2.Accounting policies (continued)
| 2.5 | Turnover
Turnover represents the aggregate amount of revenue from the provision and arrangement of inclusive holidays and other services supplied to customers in the ordinary course of business. Turnover is recognised when all of the following conditions are satisfied: - The amount of turnover can be measured reliably; - It is probable that the Group will receive the consideration due under the contract; - The costs incurred and the costs to complete the contract can be measured reliably. Turnover from holidays represents the gross amounts earned from arranging an itinerary and booking the individual components. Prior to departure, changes may be made to certain holidays such as upgrades, changing of itineraries or cancellations. Such changes are accounted for in the month in which the revision occurs. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
| 2.6 | Operating leases: the Group as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.7 | Research and development
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
| 2.8 | Website development
Website development costs are capitalised and included within tangible fixed assets. In the directors' opinion, the website will generate revenue directly and the present value of the future cash flows generated by the website will exceed the amounts capitalised. Page 20
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025 2.Accounting policies (continued)
| 2.9 | Government grants
Grants are accounted for under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.
| 2.10 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.11 | 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.
| 2.12 | Borrowing costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
| 2.13 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds. Page 21
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025 2.Accounting policies (continued)
| 2.14 | 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 and the Group operate and generate 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.
| 2.15 | Exceptional items
Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence. Page 22
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025 2.Accounting policies (continued)
| 2.16 | Intangible assets
Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The estimated useful lives range as follows:
|  |  |  | Goodwill | - |  | Straight line over 10 years
| 2.17 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. The estimated useful lives range as follows:
|  |  |  | Short-term leasehold property | - | Straight line over the lifetime of the lease
|  |  |  | Computer and IT equipment | - | Straight line over 5 years
|  |  |  | Motor vehicles | - | Straight line over 4 years
|  |  |  | Fixtures and fittings | - | Straight line over 10 years
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.
| 2.18 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment. Page 23
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025 2.Accounting policies (continued)
| 2.19 | 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.
| 2.20 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
| 2.21 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.22 | 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.
| 2.23 | Financial instruments
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Page 24
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025 2.Accounting policies (continued)
| 2.23 | Financial instruments (continued)
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 Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Other financial assets Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment. Impairment of financial assets 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 25
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025 2.Accounting policies (continued)
| 2.23 | 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 Group after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies 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. Other financial instruments Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss. Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy. Page 26
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. a) Critical judgments in applying the Group's accounting policies The directors believe that there are no critical judgments involved in applying the Group's accounting policies that warrant disclosure. b) Key accounting estimates and assumptions The directors believe that there are no key accounting estimates and assumptions involved in applying the Group's accounting policies that warrant disclosure.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Tour operator and travel agency holiday sales | 32,319,330 | 35,325,683
Analysis of turnover by source market:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| United Kingdom | 23,824,624 | 26,755,264
| Republic of Ireland | 8,494,706 | 8,570,419
|  | 32,319,330 | 35,325,683
5. | Other operating income
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Government grants receivable | 3,396 | 4,889
| Included within government grants above are grants from Dublin City Council to assist with increasing business costs within the city.
Page 27
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fair value (gains)/losses (recognised within cost of sales) | (63,567) | 49,304
| Exchange differences | 4,331 | (3,628)
| Other operating lease rentals | 161,911 | 166,888
7. | Auditors' remuneration
| During the year, the Group obtained the following services from the Company's auditors:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements | 29,240 | 26,408
| Fees payable to the Company's auditors in respect of: |  |
| Audit-related assurance services | 26,246 | 25,224
| Regulatory renewal services | 4,678 | 5,465
| All other services | 3,802 | 13,208
Page 28
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
8. | Employees
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Wages and salaries | 2,594,318 | 2,688,142
| Social security costs | 313,719 | 285,076
| Cost of defined contribution scheme | 87,894 | 85,764
|  | 2,995,931 | 3,058,982
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Administration | 23 | 22
|  | Marketing | 4 | 3
|  | Sales | 50 | 50
|  |  | 77 | 75
| The Company has no employees other than the directors, who did not receive any remuneration (2024 - £NIL)
9. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 290,185 | 338,387
| Group contributions to defined contribution pension schemes | 45,227 | 45,319
|  | 335,412 | 383,706
| During the year retirement benefits were accruing to 3 directors (2024 - 3) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £107,083 (2024 - £108,721).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £21,227 (2024 - £21,319).
| During the year, directors' emoluments totalling £53,542 (2024 - Nil) were capitalised as part of one of the Company's software development projects.
Page 29
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
10. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank interest receivable | 177,104 | 264,950
11. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank interest payable | 2,434 | 6,013
| Other loan interest payable | 8,220 | 31,181
|  | 10,654 | 37,194
12. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 14,675 | 197,300
| Deferred tax |  |
| Origination and reversal of timing differences | 70,339 | 9,218
| Tax on profit | 85,014 | 206,518
Page 30
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025 12.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 271,036 | 913,971
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 67,759 | 228,493
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 24,932 | 106
| Capital allowances for year in excess of depreciation | (70,619) | 6,572
| Profits taxed outside the UK | (7,397) | (37,871)
| Movement in deferred tax | 70,339 | 9,218
| Total tax charge for the year | 85,014 | 206,518
| Factors that may affect future tax charges
There were no factors that may affect future tax charges at 31 October 2025.
13. | Individual income statement
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent Company is not presented as part of these financial statements. The parent Company had no income or expenditure for the financial year (2024 - £50,000 dividends received).
14. | Exceptional items
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Exceptional legal & professional expenses | 81,987 | -
Page 31
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
15. | Intangible assets
| Group
|  | Goodwill
|  | £
| Cost |
| At 1 November 2024 | 151,132
| At 31 October 2025 | 151,132
| Amortisation |
| At 1 November 2024 | 151,132
| At 31 October 2025 | 151,132
| Net book value |
| At 31 October 2025 | -
| At 31 October 2024 | -
Page 32
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
16. | Tangible fixed assets
| Group
|  | Short-term leasehold property | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 November 2024 | 227,075 | 2,883,409 | 25,000 | 65,157 | 3,200,641
| Additions | 3,249 | 515,992 | - | 2,929 | 522,170
| Disposals | - | (17,900) | - | (7,360) | (25,260)
| Exchange adjustments | - | 39,388 | - | 2,476 | 41,864
| At 31 October 2025 | 230,324 | 3,420,889 | 25,000 | 63,202 | 3,739,415
| Depreciation |  |  |  |  |
| At 1 November 2024 | 218,831 | 2,548,382 | 9,800 | 26,850 | 2,803,863
| Charge for the year on owned assets | 1,273 | 204,405 | - | 6,587 | 212,265
| Charge for the year on financed assets | - | - | 8,400 | - | 8,400
| Disposals | - | (17,900) | - | (7,360) | (25,260)
| Exchange adjustments | - | 30,260 | - | 1,057 | 31,317
| At 31 October 2025 | 220,104 | 2,765,147 | 18,200 | 27,134 | 3,030,585
| Net book value |  |  |  |  |
| At 31 October 2025 | 10,220 | 655,742 | 6,800 | 36,068 | 708,830
| At 31 October 2024 | 8,244 | 335,027 | 15,200 | 38,307 | 396,778
Page 33
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
17. | Fixed asset investments
| Company
|  | Investments in subsidiary companies
|  | £
| Cost or valuation |
| At 1 November 2024 | 244,827
| At 31 October 2025 | 244,827
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Registered office | Principal activity | Class of shares | Holding
| Tropical Sky Limited (UK) | 2nd Floor, Nucleus House, 2 Lower Mortlake Road, Richmond, TW9 2JA | Tour operator | Ordinary | 100%
| Tropical Sky Limited (Ireland) | 1 Kingram Place, Dublin, D02 V061 | Travel agent | Ordinary | 100%
| Tropical Sky Hotels Limited (UK) | 2nd Floor, Nucleus House, 2 Lower Mortlake Road, Richmond, TW9 2JA | Dormant | Ordinary | 100%
| Tropical Skies Limited (UK) | As above | Dormant | Ordinary | 100%
| Africa Sky Limited (UK) | As above | Dormant | Ordinary | 100%
| American Sky Limited (UK) | As above | Dormant | Ordinary | 100%
| Australian Sky Limited (UK) | As above | Dormant | Ordinary | 100%
| Canadian Sky Limited (Ireland) | 1 Kingram Place, Dublin, D02 V061 | Dormant | Ordinary | 100%
| New Zealand Sky Limited (Ireland) | As above | Dormant | Ordinary | 100%
| Africa Sky Limited (Ireland) | As above | Dormant | Ordinary | 100%
| American Sky Limited (Ireland) | As above | Dormant | Ordinary | 100%
| Australia Sky Limited (Ireland) | As above | Dormant | Ordinary | 100%
Page 34
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025 Subsidiary undertakings (continued)
| The aggregate of the share capital and reserves as at 31 October 2025 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:
| Name | Aggregate of share capital and reserves | Profit/(Loss)
|  | £ | £
| Tropical Sky Limited (UK) | 1,671,302 | 126,949
| Tropical Sky Limited (Ireland) | 1,057,192 | 63,404
| Tropical Sky Hotels Limited (UK) | 100 | -
| Tropical Skies Limited (UK) | 100 | -
| Africa Sky Limited (UK) | 100 | -
| American Sky Limited (UK) | 100 | -
| Australian Sky Limited (UK) | 100 | -
| Canadian Sky Limited (Ireland) | 88 | -
| New Zealand Sky Limited (Ireland) | 88 | -
| Africa Sky Limited (Ireland) | 88 | -
| American Sky Limited (Ireland) | 88 | -
| Australia Sky Limited (Ireland) | 88 | -
18. | Debtors
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Trade debtors | 9,731,817 | 9,041,082 | - | -
| Amounts owed by group undertakings | - | - | 671,074 | 671,074
| Other debtors | 43,868 | 79,455 | - | -
| Prepayments and accrued income | 153,963 | 127,780 | - | -
| Financial instruments | 64,920 | 8,649 | - | -
|  | 9,994,568 | 9,256,966 | 671,074 | 671,074
19. | Cash and cash equivalents
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Cash at bank and in hand | 8,677,785 | 10,173,147
Page 35
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
20. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Bank loans | 57,468 | 327,240 | - | -
| Trade creditors | 15,773,350 | 15,373,263 | - | -
| Amounts owed to group undertakings | - | - | 82,371 | 82,371
| Corporation tax | 12,726 | 194,941 | - | -
| Other taxation and social security | 78,690 | 70,629 | - | -
| Other creditors | 18,688 | 656,113 | - | -
| Accruals and deferred income | 26,846 | 26,330 | - | -
| Financial instruments | - | 7,296 | - | -
|  | 15,967,768 | 16,655,812 | 82,371 | 82,371
| At 31 October 2025, the Group had contractual commitments in relation to foreign currency forward contract derivatives totalling £3,632,993 (2024 - £4,880,822). At 31 October 2025, the Group had £231,407 (2024 - £271,103) of BSP outstanding cash sales to be paid to the International Air Transport Association ('IATA') included within trade creditors for tickets issued during the month of October 2025, all of which was paid within November 2025.
21. | Creditors: Amounts falling due after more than one year
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Bank loans | 6,588 | 60,953
Page 36
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
22. | Loans
| Analysis of the maturity of loans is given below:
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Bank loans falling due within one year | 57,468 | 327,240
| Bank loans falling due within 1-2 years | 6,588 | 54,621
| Bank loans falling due within 2-5 years | - | 6,332
|  | 64,056 | 388,193
| Included within bank loans above was a UK government-backed Coronavirus Business Interruption Loan Scheme ('CBILS') loan and benefited from a capital repayment holiday of 12 months, after which the loan was due to be repaid through 16 quarterly instalments ending in August 2025. The applicable interest rate was fixed at 2.84% above the base rate. In addition to the 12 month capital repayment holiday, the loan benefited from a Business Interruption Payment ('BIP') made by the UK Government on behalf of the Company to cover interest arising on the CBILS loan for the first 12 months. Also included within bank loans above is a Republic of Ireland government-backed COVID-19 Credit Guarantee Scheme loan and benefits from a capital repayment holiday of 12 months, after which the loan is due to be repaid through 53 monthly instalments ending in October 2026. The applicable interest rate will be fixed at 2.691% above the base rate.
Page 37
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
23. | Deferred taxation
| Group
|  | 2025 | 2024
|  | £ | £
| At beginning of year | (22,380) | (12,621)
| Charged to profit or loss | (70,339) | (9,218)
| Currency translation differences | 314 | (541)
| At end of year | (92,405) | (22,380)
| Company
|  | 2025 | 2024
| At end of year | - | -
| The provision for deferred taxation is made up as follows:
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Accelerated capital allowances | (92,405) | (22,380)
|  | (92,405) | (22,380)
Page 38
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
24. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 128,650 (2024 - 128,650) Ordinary Shares shares of £1.00 each | 128,650 | 128,650
| The Ordinary shares of £1.00 each carry full voting rights, full dividend rights and full rights to participation in any capital distribution on winding up.
25. | Reserves
Share premium account The share premium account represents consideration received for shares issued above their nominal value, net of transaction costs. Capital redemption reserve The capital redemption reserve represents the amounts arising from the redemption of Ordinary Shares. Foreign exchange reserve The foreign exchange reserve represents differences arising upon the revaluation of foreign subsidiary companies stated in Euros. The financial statements of these companies are revalued to match the presentation currency of the Group for consolidation purposes, to show the entirety of the Group's results in Pounds Sterling (GBP). See accounting policy 2.4 for details of how the individual balances within the foreign subsidiaries are translated. Profit and loss account The profit and loss account represents all current and prior period retained profits and losses, less any dividends paid to shareholders of the Group.
26. | Contingent liabilities
At 31 October 2025, there were contingent liabilities outstanding in respect of counter indemnities given by the Group, in the normal course of business, to the Group's bond insurance obligors in respect of Irish Aviation Authority and The Association of Bonded Travel Organisers Trust Limited travel bonds amounting to £473,028 (2024 - £458,169).
27. | Pension commitments
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independent fund administered by Standard Life. The pension cost charge represents contributions payable by the Group to the fund and amounted to £87,894 (2024 - £85,764). Contributions totalling £9,951 (2024 - £9,859) were payable to the fund at the reporting date and are included in creditors. Page 39
VIVID SKIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
28. | Commitments under operating leases
| At 31 October 2025 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Due within 1 year | 152,346 | 156,338
| Due between 2-5 years | 387,445 | 521,993
| Due after 5 years | - | 10,555
|  | 539,791 | 688,886
29. | Post balance sheet events
There have been no significant events affecting the Group since the year end.
30. | Controlling party
The Company's controlling parties are M G Collins and Ms J Collins, by virtue of their beneficial ownership of 62.18% of the issued and paid up share capital in the Company.
Page 40