Registered number:
03840986
Pura Aventura Limited
Unaudited
Directors' report and financial statements
Information for filing with the registrar
For the year ended
31 December 2020
|
Pura Aventura Limited
Directors' report
For the year ended 31 December 2020
The directors present their report and the financial statements for the year ended 31 December 2020.
The principal activity of the company continued to be that of tour operator activities.
The directors who served during the year were:
A letter from our N.E.D.
Overview
The COVID pandemic has caused havoc in the UK Outbound Travel Sector. For some tour operators the outcome will be catastrophic.
Pura Aventura is solvent and has sufficient liquidity, assuming international travel resumes by the end of 2021. It will continue to trade and ultimately thrive as a unique and successful travel business.
Our reputation has been considerably enhanced by our prudent business strategy and correct approach to protecting customer monies.
A new integrated financial modeling program was developed to allow detailed foresight and control of client funds, cash flow and costs. At any point we can model scenarios and forecast cash impact with live data. This is a major step forward.
2021
Our cost reduction strategy is in place. We have taken up all state offered remedies of Furlough and CBILS. The Balance Sheet is bolstered by a recent rights issue.
Our trading assumptions are to achieve minimal revenue for 2021. Costs are cut to the bone. Under this scenario our cashflow forecast for the year remains positive. There is considerable interest and some meaningful booking activity for 2022 departures.
Our market reputation has been enhanced by B Corp certification and our Travel Positive proposition. We are now regarded as thought leaders in the Responsible Travel sector.
The future
No-one can predict what may happen in these unforeseen and unwelcome circumstances. As Non–Executive Director I am wholly satisfied and proud that the team are doing absolutely everything to drive a course through these difficult times. Pura Aventura in my view will not only survive but thrive and grow.
Simon Tobin, Non-Executive Director, Pura Aventura, July 2021
Page 1
|
Pura Aventura Limited
Directors' report (continued)
For the year ended 31 December 2020
A letter from our C.E.O.
January 2020 started well with momentum maintained from our strong 2019 performance. As February progressed, the Covid pandemic started to impact consumer confidence and sales through until March when all travel stopped. The UK government effectively banned all international travel at that time, a ban that effectively remained in place throughout the year. The window of outbound international travel from the UK which happened in summer 2020 was so short lived that it did not allow for any of our clients to travel nor for new clients to book and travel, meaning revenue for M3-M12 2020 was zero. Sales in January & February 2020 were at expected levels, collapsing from March onwards. By year end, sales in M1-M2 represented 75% of 2020 sales.
Returning to March 2020, our first priority was to safely repatriate all clients and to handle cancellations and deferrals of future bookings whilst also creating a comprehensive management tool which allowed us to connect revenue probabilities to budgets to headcount to cash in order to make the best possible decisions in a continually fast changing situation.
This visibility gave us the confidence to offer clients refunds and deferrals in a way which far exceeded our legal responsibilities under the Passenger Travel Regulations (PTRs) and not resort to the use of Refund Credit Notes (RCNs) by which financial liabilities to customers were deferred by many companies in the UK travel sector. Indeed, we actively sought to partially refund clients for whom we held full balances to ensure that we were only holding on to deposit payments for all customers. Over the course of 2020, 75% of clients chose to defer their trips instead of cancelling. As of Q2 2021, we are starting to see some of those 25% original cancellations seeking to rebook, notably US based clients.
Combined with ongoing, proactive client communication, these activities led to our being named by consumer rights magazine Which? as one of just 24 travel companies for consumers to trust with their money during Covid.
We acted quickly to reduce our cost base and accessed all available government support, including taking government backed loans at low interest over a maximum period of six years. Nevertheless, we have not been able to maintain all positions in the company but all leavers have left on very good terms and have been supported as they transition to new roles in different sectors.
Mid-2020 the decision was taken to create a positive outcome from the pandemic. We maintained our commitment to mitigate our carbon footprint (scopes 1, 2 & 3) for the year by means of our 1% for the Planet membership through which we support a world-class carbon mitigation project in Nicaragua. Additionally, we decided to push on with our B Corp certification, becoming one of the first UK travel companies to successfully certify in November 2020.
Although 2021 started in much the same way as sales in M1-M6 of 2021 are double the level of M3–M12 of 2020 so there is positive movement as vaccine rollout improves consumer sentiment. Revenues continue to be zero from UK clients though US clients inbound to Spain & Portugal are starting to arrive in Q3 and long haul outbound from UK should start at some point during Q4.
We can continue to access available UK government support through end of September 2021 to maintain our core team, ready for the return of business. We have bolstered our balance sheet with a rights issue in order to weather whatever else the pandemic can present us with.
Reputationally, we continue to be on the front foot with interviews in the Financial Times, BBC Radio 4 and CNN. We have been instrumental in establishing the Travel by B Corp group, appearing on panels alongside Which? and Condé Nast. As a management team, we are confident that the company will continue not just as a going concern but as a thriving business with a reputation for thought leadership to match. As Which? put it in July 2021: “Pura Aventura is a company which puts both its clients and the planet first.”
Where last year we imagined the pandemic being over within the calendar year, it is apparent that both 2020 and 2021 will be largely written off in terms of revenues. We now believe 2022 will see our return to some level of profitability with our pre-Covid trend of explosive growth returning from 2023.
Page 2
|
Pura Aventura Limited
Directors' report (continued)
For the year ended 31 December 2020
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
................................................
T Power
Director
|
|
Page 3
|
Pura Aventura Limited
Registered number:
03840986
Balance sheet
As at
31 December 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
Creditors: amounts falling due after more than one year
|
|
|
|
|
|
Provisions for liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 4
|
Pura Aventura Limited
Registered number:
03840986
Balance sheet
(continued)
As at
31 December 2020
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The Company's
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
................................................
T Power
|
|
|
The notes on pages 7 to 17 form part of these financial statements.
Page 5
|
Pura Aventura Limited
Statement of changes in equity
For the year ended
31 December 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
|
Total transactions with owners
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 7 to 17 form part of these financial statements.
|
Statement of changes in equity
For the year ended
31 December 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
|
Dividends: Equity capital
|
|
|
|
|
Total transactions with owners
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 7 to 17 form part of these financial statements.
|
Page 6
|
Pura Aventura Limited
Notes to the financial statements
For the year ended 31 December 2020
Pura Aventura Limited is a private company limited by shares incorporated in England and Wales.
The company's registered office address is:
18 Bond Street
Brighton
East Sussex
BN1 1RD
The company's registration number is: 03840986
2.
Accounting policies
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
Enter text here - user input
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
|
|
Exemption from preparing consolidated financial statements
|
The
Company
, and the
group
headed by it, qualify as small as set out in
section 383 of the Companies Act 2006
and the parent and
group
are considered eligible for the exemption to prepare consolidated accounts.
The going concern basis is considered appropriate as the company is dependant upon the support of
its directors. The directors have indicated that their support will continue for the foreseeable future. If this assumption proves to be inappropriate, then adjustments may have to be made to adjust the value of the assets to their recoverable amount, to provide for any further liabilities which might arise and reclassify fixed assets as current assets.
The directors have also given due consideration to the impact of the COVID-19 pandemic, so far as reasonably possible, due to its unprecedented impact on the wider economy, it is difficult to evaluate with any certainty the potential outcomes on the company's trade, its customers and suppliers. However, taking into consideration the UK Government's response and the company's planning, the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
Page 7
|
Pura Aventura Limited
Notes to the financial statements
For the year ended 31 December 2020
2.
Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙
the amount of revenue can be measured reliably;
∙
it is probable that the Company will receive the consideration due under the contract;
∙
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙
the costs incurred and the costs to complete the contract can be measured reliably.
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.
Amortisation is provided on the following bases:
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation.
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.
Page 8
|
Pura Aventura Limited
Notes to the financial statements
For the year ended 31 December 2020
2.
Accounting policies (continued)
Investments in subsidiaries are measured at cost less accumulated impairment.
Short term debtors are measured at transaction price, less any impairment.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Short term creditors are measured at the transaction price.
Grants are accounted 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 Profit and loss account in the same period as the related expenditure.
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.
Page 9
|
Pura Aventura Limited
Notes to the financial statements
For the year ended 31 December 2020
2.
Accounting policies (continued)
|
|
Foreign currency translation
|
Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income. within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
|
|
Operating leases: the Company as lessee
|
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
Interest income is recognised in profit or loss using the effective interest method.
Page 10
|
Pura Aventura Limited
Notes to the financial statements
For the year ended 31 December 2020
2.
Accounting policies (continued)
|
|
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 balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet 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 balance sheet date.
|
The average monthly number of employees, including the directors, during the year was as follows:
|
|
|
|
|
|
Company contributions to defined contribution pension schemes
|
|
|
|
|
|
|
|
|
|
|
Page 11
|
Pura Aventura Limited
Notes to the financial statements
For the year ended 31 December 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge for the year on owned assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 12
|
Pura Aventura Limited
Notes to the financial statements
For the year ended 31 December 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge for the year on owned assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in subsidiary companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 13
|
Pura Aventura Limited
Notes to the financial statements
For the year ended 31 December 2020
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: Amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 14
|
Pura Aventura Limited
Notes to the financial statements
For the year ended 31 December 2020
|
|
|
Analysis of the maturity of loans is given below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due 1-2 years
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due 2-5 years
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due after more than 5 years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 15
|
Pura Aventura Limited
Notes to the financial statements
For the year ended 31 December 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Charged to profit or loss
|
|
|
|
|
|
The provision for deferred taxation is made up as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated capital allowances
|
|
|
|
Tax losses carried forward
|
|
|
|
Short term timing differences
|
|
|
|
|
|
|
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
937,970
(2019 -
937,970
)
Ordinary
shares of £
0.10
each
|
|
|
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £9,992 (2019 - £11,553). Contributions totalling £1,582 (2019 - £2,421) were payable to the fund at the balance sheet date and are included in creditors.
|
Commitments under operating leases
|
|
At 31 December 2020 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Later than 1 year and not later than 5 years
|
|
|
|
|
|
|
Page 16
|
Pura Aventura Limited
Notes to the financial statements
For the year ended 31 December 2020
|
Related party transactions
|
|
Pura Aventura Chile SpA
(Subsidiary Company)
During the year Pura Aventura Limited provided an unsecured interest loan to Pura Chile for running costs. At the balance sheet date the amount owed to Pura Aventura Limited was £74,582 (2019: £76,808).
Pura Aventura Travel Services LTD
(A company under common control)
During the year Pura Aventura Limited paid expenses on behalf of Pura Aventura Travel Services LTD amounting to £175. At the balance sheet date the amount owed to Pura Aventura Limited was £175 (2019: £nil).
|
|
Post balance sheet events
|
In April 2021 a rights issue of 937,970 ordinary shares was agreed via a special resolution. The aggregate nominal value of the shares issued totalled £93,797.
Page 17
|