Registered number:
FOR THE YEAR ENDED 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
COMPANY INFORMATION
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EQUITY INSPIRING LEARNING LIMITED
CONTENTS
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EQUITY INSPIRING LEARNING LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2022
The directors present their annual report of Equity Inspiring Learning Limited (“the Company”) and its subsidiaries ("the Group") for the period ended 31 October 2022.
Introduction
The Group is required by the Companies Act 2006, to set out in this report a fair review of the business of the Group during the financial period ended 31 October 2022, the position of the Group at the period end, and a description of the principal risks and uncertainties facing the Group. The review is prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for the strategies to succeed, and the business review should not be relied upon by any other party or for any other purpose.
Section 172 (1) Statement
The information provided below is intended to explain how the directors considered the interests of the Group’s key stakeholders and the broader matters set out in section 172 (1) (a) to (f) of the Companies Act 2006 when performing their duty to promote the success of the Group under section 172 of the Companies Act 2006.
The principal activity of the Group is that of an educational tour provider.
The results for the year and financial position of the Group are shown in the financial statements on pages 11 to 44. The Group has been affected by the Covid-19 outbreak, which was declared a pandemic on 11 March 2020. Since then, events moved rapidly and continued to change at short notice during the last 12 months. During this period, management set up arrangements within the organisation to monitor, plan and respond pro-actively to the continuously changing situation. Throughout this pandemic, the safety of our staff and customers has been and is the highest priority. In February 2022, school travel recommenced on a limited basis but with the long lead-time associated with organising trips, the impact on the financial performance for the 12 months to October 2022 is not significant. However, the business saw a surge in bookings for the academic year 2022/23. Having restructured the fixed cost base, management plans to be prudent with any investment in fixed costs and will focus on a variable cost model.
In the last 12 months, the Management Team has been restructured and put in place an experienced travel team. The business is led on a day-to-day basis by Sharon Confue (Sales & Marketing Director) Ian Davis, (Commercial and Operations Director) and Sean Pettit (Finance Director).
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EQUITY INSPIRING LEARNING LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
The Group continues monitoring a number of KPIs in respect of sales, gross profit and operating cash.
Travel regulatory bodies The Group holds an ATOL granted by the CAA. The Group is also a bonded member of ABTA. Principal risks and uncertainties 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 risks and uncertainties facing the Group. Covid-19: Due to the Covid-19 global pandemic, travel in the UK and Europe was restricted and there were strict social distancing and quarantine rules in place. However, the positive news is that a majority of the population in UK and Europe has been vaccinated and there are indications of travel market picking up. Regulatory risk: The Group is supported by 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 licence is renewed in March each year and is subject to assessments of fitness and financial criteria, the framework of which is available on the CAA website (www.caa.co.uk). The Group is also a bonded member of ABTA and renews it's ABTA consumer protection bond in March each year and is subject to assessments of fitness and financial criteria. We are confident that the various regulators will continue to support the business. Geo-political events and natural disasters: The nature of the business operation exposes the Group to a wide range of Geo-political and natural disasters. To counter this the Group operates a flexible business model with the ability to shift capacity amongst a variety of destinations where necessary plus it has restructured it's operating cost model to remove large fixed cost elements.
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EQUITY INSPIRING LEARNING LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
Commercial relationships:
The Group has well established and close relationships with customers and suppliers and the risk is spread by not placing over-reliance on any one supplier in any particular area. Our supplier base is well spread. Notwithstanding, if a relationship were lost or damaged with a major supplier this could have an effect on the business. Hence the management team meets regularly with suppliers to maintain good working relationships and to understand the suppliers' financial position. Information technology: The Group is heavily reliant upon information technology. Investment is being made to ensure the Group has advanced and efficient systems in place, but there is a risk if there were a major failure - particularly if it were to affect selling systems. Procedures are in place to minimise the time a selling system is unavailable in the event of such failure.
This report was approved by the board on 27 March 2023 and signed on its behalf.
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EQUITY INSPIRING LEARNING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2022
The directors present their report and the financial statements for the year ended 31 October 2022.
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;
∙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 £1,582,000 (2021 - loss £743,000 ).
No dividends have been paid or proposed for the period ended 31 October 2022.
The director who served during the year was:
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EQUITY INSPIRING LEARNING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
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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EQUITY INSPIRING LEARNING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EQUITY INSPIRING LEARNING LIMITED
We have audited the financial statements of Equity Inspiring Learning Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 October 2022, which comprise the Group Income Statement, the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and 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 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.
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EQUITY INSPIRING LEARNING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EQUITY INSPIRING LEARNING LIMITED (CONTINUED)
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.
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.
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EQUITY INSPIRING LEARNING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EQUITY INSPIRING LEARNING LIMITED (CONTINUED)
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EQUITY INSPIRING LEARNING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EQUITY INSPIRING LEARNING LIMITED (CONTINUED)
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 judgement and maintain professional scepticism 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 its regulator, the Civil Aviation Authority ("CAA"), its membership of The Association of British Travel Agents ("ABTA") and its accreditation with the International Air Transport Association ("IATA") and sample test relevant documentation to assess this and the effectiveness of its control environment; - We review the Group's relationships with related parties, identifying and disclosing transactions during the year and balances at year-end with such parties; - We conclude on the appropriateness of the directors' 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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EQUITY INSPIRING LEARNING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EQUITY INSPIRING LEARNING 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
TW9 2JA
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EQUITY INSPIRING LEARNING LIMITED
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
REGISTERED NUMBER: 02598164
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
REGISTERED NUMBER: 02598164
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 OCTOBER 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 23 to 44 form part of these financial statements.
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EQUITY INSPIRING LEARNING LIMITED
REGISTERED NUMBER: 02598164
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 23 to 44 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2022
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 OCTOBER 2021
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EQUITY INSPIRING LEARNING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 OCTOBER 2021
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EQUITY INSPIRING LEARNING LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
Equity Inspiring Learning Limited is a private company limited by shares and incorporated in England. Its registered office is 3rd Floor, Queensberry House,106 Queens Road, Brighton, BN1 3XF.
2.Accounting policies
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 Income Statement in these financial statements.
The following principal accounting policies have been applied:
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 Income Statement 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 2014.
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
2.Accounting policies (continued)
Group reconstructions are accounted for by applying the merger accounting method.
Under the merger accounting method, the carrying values of the assets and liabilities of the entities forming the combination are not required to be adjusted to fair value. Appropriate adjustments are made to achieve uniformity of accounting policies in the combining entities. The results and cashflows of all the combining entities are brought into the financial statements of the combined entity from the beginning of the financial period in which the combination occurred, adjusted so as to achieve uniformity of accounting policies. The comparative information is similarly restated by including the results and the cashflows of all the combining entities for the previous reporting period and their statement of financial position for the previous reporting date, adjusted as necessary to achieve uniformity of accounting policy. The difference, if any, between the nominal value of shares issued plus the fair value of any other consideration given, and the nominal value of shares received in exchange is shown as a movement on the merger reserve in the consolidated financial statement.
The travel industry is experiencing the benefit of a post Covid-19 bounce back in travel, however it is still experiencing challenges in relation to supplier resource and ability to service. This combined with consumer unease in relation to the current economic environment, with increasing energy costs and inflation impact, has meant that Group management and the directors have continued to review the Group’s financial position, to ensure swift response to any changes in planned trading performance.
The directors have prepared budgets and cashflow forecasts to June 2024 which reflect good operational liquidity and profitability throughout. 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. During the year the business managed to secure a Recovery Loan and a Revolving credit facility of £500,000 each to further enhance its liquidity together with a further £300,000 from shareholders in the form of additional share capital. Group management and the directors 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. This is supported by the strong performance seen so far in the first half of 2023, which has seen a significant upside in demand. The Group has been well placed to meet and service the additional volume. As a result, and with the Group continuing to receive the full support of its shareholders, the directors believe that it is still appropriate to apply the going concern basis for the foreseeable future.
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Turnover is the amonut derived from ordinary activities and represents the aggregate revenue from tours departed during the year.
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
2.Accounting policies (continued)
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. Grants of a revenue nature are recognised in the Consolidated Income Statement in the same period as the related expenditure.
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
2.Accounting policies (continued)
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:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
2.Accounting policies (continued)
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
2.Accounting policies (continued)
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
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. c) Recoverability of intercompany balances The directors have considered the recoverability of the amounts owed by the group undertakings as disclosed in note 16 of these financial statements. This consideration included looking at the financial plans and liquidity arrangements. The director considers that the outstanding amount is recoverable and has agreed that the level of credit extended will be reduced by the end of the next financial period. d) Nature of exceptional items The directors consider that the exceptional items disclosed in these financial statements fall outside the scope of our ordinary activities.
Analysis of turnover by country of origin:
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
A change to the main UK corporation tax rate, announced in the Budget on 11 March 2021, was substantively enacted on 24 May 2021, whereby the tax rate applicable for years starting from 1 April 2023
increased to 25% from current tax rate of 19%.
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
13.Intangible assets (continued)
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
14.Tangible fixed assets (continued)
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
Subsidiary undertakings (continued)
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
Bank loans consist of £900,000 of Coronavirus Business Interruption Loan and £500,000 under the Recovery Loan Scheme ("RLS").
The Coronavirus Business Interruption Loan is provided by NatWest Bank and is supported by the Coronavirus Business Interruption Loan Scheme. The loan is for a 72 month term with no capital repayments or interest payments in the first 12 months. Interest is payable at 4.71% per annum over the bank base rate thereafter. Recovery Loan is a working capital loan provided by Natwest Bank and is supported by the Recovery Loan Scheme. The loan is for a period of 42 months with no capital repayments or interest payments in the first 6 months. Interest is payable at 5.5% per annum over the bank base rate thereafter.
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
During the year the Company issued 300,000 Ordinary shares of £1 each.These were fully paid at the time of issue.
Share premium account
Capital redemption reserve
Capital contribution account The capital contribution account relates to the sale of shares in STG Travel Group from The School Travel Group Limited to Morel Investment Management Limited.
Merger Reserve
Profit and loss account
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group. The pension cost charge represents contributions payable by the Group to the fund and amounted to £34,415 (2021: £34,484).
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
Included in the cash at bank as at 31 October 2022 was restricted cash of £756,930 (2021: £756,930) provided as security for ABTA travel bonds.
Unrestricted cash - £3,222,130 Restricted cash - £756,930 Total cash - £3,979,060
The Group is accredited with International Air Transport Association ("IATA") under IATA Code 91274956. As at 31 October 2022 there was no BSP liability outstanding (2021: £Nil).
The immediate parent company and the smallest and largest group to consolidate these financial statements is Morel Investment Management Limited which is incorporated in England and Wales. Morel Investment Management Limited has 100% ownership of the issued share capital of the Company.
The ultimate holding undertaking is Taumarunui Investment LLP with its registered office at Create Business Hub, Ground Floor, 5 Rayleigh Road, Hutton, Brentwood, Essex CM13 1AB under registered number OC420366.
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EQUITY INSPIRING LEARNING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
The directors consider that the ultimate controlling party is Mr Bryan Green by virtue of his controlling interest in the parent undertaking Taumarunui Investment LLP.
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