Registered number:
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
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WINTERFOLD LUXURY TRAVEL LIMITED
COMPANY INFORMATION
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WINTERFOLD LUXURY TRAVEL LIMITED
CONTENTS
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WINTERFOLD LUXURY TRAVEL LIMITED
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
The Directors present their strategic report for the Company and Group for the year ended 30 September 2020.
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 period ended 30 September 2020, 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 Company was incorporated on 14 November 2019 and acquired the entire shareholding of Caribtours Limited on 23 December 2019. The Group’s policy has been to diversify its product by offering luxury tailor made holidays to an increasingly new range of destinations whilst maintaining its core product of luxury Caribbean holidays. The Group implemented its strategy of introducing flexible working to all employees, allowing staff to work either from home or from the office, and to reduce the amount of office space required. By March 2020 75% of the Group was working flexibly. When the lock down happened, the Group moved seamlessly to a full-time home working environment with no loss of service or downtime of systems. This strategy increased spend in IT but reduced property costs and resulted in an overall reduction to the fixed overhead. The Group further substantially reduce its fixed overhead base during the year. The strategy of the Group during the pandemic has been to ensure that full communication has been maintained with all clients who were due to travel and every effort made to either rebook or refund the client in accordance with their wishes. Timely supplier payments have continued to be made throughout. The Group reacted quickly to the COVID-19 pandemic, with the reduction of fixed overheads and maintaining close communication with customers and suppliers. The Group has positioned itself to be at the forefront of the industry when consumer demand picks up again. The director considers the results to be satisfactory given the challenges presented by economic uncertainty caused by Brexit in 2019 and the global travel restrictions caused by the COVID-19 pandemic. The key performance indicators used by the directors to monitor the progress of the Group are set out below:-
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WINTERFOLD LUXURY TRAVEL LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
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.
The demand for holidays is affected by local economic conditions. The uncertainty created by the COVID-19 pandemic along with Brexit, and the ensuing volatility in exchange rates and consumer confidence creates a fragile trading environment. Despite the negative impact upon the travel industry, the directors believe that the Group is able to quickly adapt to changes in the local market demand, however a prolonged period of booking slowdown could adversely affect financial results. The prolonged periods of restrictions to overseas travel up until May 2021 have obviously had a significant impact on tour operators and pose a continuing risk to business. There is however pent up demand and a strong desire of the Group's customers to travel as soon as it is safe to do so. A large number of customers are looking to defer their travel dates to later in the year rather than cancel their bookings outright. The Group is exposed to various regulators, including the Civil Aviation Authority ("CAA"), which issues an Air Travel Organisers Licence ("ATOL"), which is required in order for the Group to operate and was renewed in March 2021. 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's website (www.caa.co.uk). The Group finances its operations through retained profits. The Group's exposure to interest rate fluctuations on its cash deposits are managed by using short term, fixed and floating deposits. The Group operates in a highly competitive market featuring innovation in the travel products and the methods by which it is 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. The Group faces transactional exposure primarily relating to the cost of acquiring accommodation, especially as a result of the weaker Pound Sterling. To manage this risk, a hedging policy has been introduced, which involves forward buying foreign currencies at a percentage of future forecast requirements. The Group has adopted an accounting policy of hedge accounting for these financial statements. The Group has well established and close relationships with customers and 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. The Group is heavily reliant on the uninterrupted operation of its IT systems. 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 including having multiple leased lines into its main office, moving to hosted solutions for its key systems and having employees working across multiple locations.
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WINTERFOLD LUXURY TRAVEL LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Principal risks and uncertainties (continued)
The nature of the business exposes the Group to various commercial risks which may affect the trading performance of the Group. These include: - acts of terrorism, particularly in key tourist destinations - epidemics in key tourist destinations which threaten the health of tourists - wars or other international uncertainty which affects air travel - natural disasters in key tourist destinations - weather conditions, both in the UK and key tourist destinations - changes in customer behaviour and preferences - increases in government taxes These factors may affect the Group by causing potential customers to cancel or postpone travel plans, reducing the earnings potential of the Group. The Group seeks to minimise such risks by operating a flexible limited commitment business model with the ability to shift capacity amongst a variety of destinations where necessary. In the case of a global shut down of the travel industry, as we are now experiencing due to the COVID-19 pandemic, the Group seeks to mitigate risk by aggressive cost cutting, while protecting its ability to effectively compete in the future.
This report was approved by the board on 31 March 2021
and signed on its behalf.
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WINTERFOLD LUXURY TRAVEL LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
The director presents his report and the financial statements for the period ended 30 September 2020.
The director is responsible for preparing the Group Strategic Report, the Director's Report and the
consolidated
financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year
. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 principal activity of the Company in the period under review was that of a holding company of a trading group. The principal activity of the Group in the period under review was that of tour operators selling holidays to the Caribbean, Indian Ocean, Far East, Middle East and Europe.
The loss for the period, after taxation, amounted to £
457,909.
The director does not recommend a final dividend for the period ended 30 September 2020.
The total distribution of dividends for the period ended 30 September 2020 will be £Nil.
The director who served during the period was:
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WINTERFOLD LUXURY TRAVEL LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
The Group is embarking on a three-pronged growth strategy through investment in technologies, expanding distribution to new markets and increasing the range of destinations offered.
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.
On 20 November 2020, the Group's existing bank loan was converted into a CBILS loan, resulting in £150,000 of restricted cash being released, a capital repayment holiday for the next 12 months and an extended repayment schedule over 5 years following the repayment holiday instead of the existing 3 year agreement.
There have been no other significant events affecting the Group since the year end, except for the ongoing Coronavirus pandemic, which has had a significant impact upon the industry in which the Group operates, as described in note 2.3. During 2021, the Group will continue to operate as outlined in the principal activity note above.
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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WINTERFOLD LUXURY TRAVEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WINTERFOLD LUXURY TRAVEL LIMITED
We have audited the financial statements of Winterfold Luxury Travel Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 30 September 2020, 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.
The impact of uncertainties due to the COVID-19 pandemic and Brexit on our audit
Uncertainties related to the effects of the COVID-19 pandemic and Brexit are relevant to understanding our audit of the financial statements. All audits assess and challenge the reasonableness of estimates made by the directors, such as recoverability of investments, intangible assets and related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and Group's future prospects and performance. The COVID-19 pandemic has had an unprecedented impact upon the worldwide economy and in particular upon the travel industry, with many consumers cancelling or delaying travel plans as a result. At the date of this report, the full range of possible effects upon travel companies cannot be estimated or assessed due to the current levels of uncertainty around government and consumer responses to what might happen. We have applied a standardised firm-wide approach in response to that uncertainty when assessing the Group's future prospects and performance. However, no audit is able, or should be expected, to predict unknowable factors or all possible future implications for a company and this is particularly the case in relation to the COVID- 19 pandemic. Brexit was also one of the most significant economic events for the UK, and at the date of this report its effects are still subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. We applied a standardised firm-wide approach in response to that uncertainty when assessing the Group's future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a company or group and this is particularly the case in relation to Brexit.
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WINTERFOLD LUXURY TRAVEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WINTERFOLD LUXURY TRAVEL LIMITED (CONTINUED)
In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 2.3 to the financial statements concerning the Group's ability to continue as a going concern.
As explained in note 2.3, the current COVID-19 pandemic has had an unprecedented impact upon the global economy and especially upon the travel industry. This has led many consumers to hold off on booking new holidays or cancel existing holidays until the global situation stabilises, resulting in greatly reduced cash flows for travel companies. These problematic trading conditions have negatively impacted the Group's trade as well as its immediate and projected cash flows. In the event that the COVID-19 pandemic worsens for a prolonged period of time, this would put pressure on the Group's finances and its ability to continue as a going concern. We draw attention to note 2.3 of the financial statements as to the review and actions undertaken by the Board of Directors to ensure that the Group has adequate resources to continue trading for at least 12 months. The financial statements have therefore been prepared on a going concern basis.
The director is responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Director's Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙
the Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
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WINTERFOLD LUXURY TRAVEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WINTERFOLD LUXURY TRAVEL LIMITED (CONTINUED)
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Director's Report.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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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WINTERFOLD LUXURY TRAVEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WINTERFOLD LUXURY TRAVEL LIMITED (CONTINUED)
This report is made solely to the Company's members
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 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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WINTERFOLD LUXURY TRAVEL LIMITED
CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
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WINTERFOLD LUXURY TRAVEL LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
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WINTERFOLD LUXURY TRAVEL LIMITED
REGISTERED NUMBER:
12315560
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 March 2021
.
The notes on pages 18 to 43 form part of these financial statements.
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WINTERFOLD LUXURY TRAVEL LIMITED
REGISTERED NUMBER:
12315560
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 18 to 43 form part of these financial statements.
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WINTERFOLD LUXURY TRAVEL LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED
30 SEPTEMBER 2020
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WINTERFOLD LUXURY TRAVEL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED
30 SEPTEMBER 2020
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WINTERFOLD LUXURY TRAVEL LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
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WINTERFOLD LUXURY TRAVEL LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
As disclosed in the Directors' Report, the principal activity of the Company in the period under review was that of a holding company of a trading group.
The principal activity of the Group in the period under review was that of tour operators selling holidays to the Caribbean, Indian Ocean, Far East, Middle East and Europe. The Company is a private company limited by shares and is incorporated in England. The address of the Company's principal place of business and registered office is 126-128 New Kings Road, London, SW6 4LZ.
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.
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
2.
Accounting policies (continued)
The current COVID-19 pandemic has had an unprecedented impact upon the global economy and in particular upon the travel industry, causing many consumers to cancel or amend their holiday arrangements.
Additionally, with the majority of consumers no longer seeking to book holidays until the global situation stabilises, many travel companies are struggling to cope with greatly reduced cash flows. The full impact of the COVID-19 pandemic on the business remains uncertain and as a result is not completely quantifiable. The director has taken immediate steps to review the Group's financial position, downgraded its forecasts and planned mitigation actions in order to neutralise the financial impact from the significant downturn in trading. The director has also performed a sensitivity analysis to assess the financial impact of a further slow down 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. As a result, the director has a reasonable expectation that the Group has adequate resources to continue in operational existence for the forseeable future, being at least the following 12 months from the signing of these financial statements, and the director believes that it is still appropriate to apply the going concern basis for the foreseeable future.
Functional and presentation currency
Transactions and balances
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
2.
Accounting policies (continued)
Turnover derived from ordinary activities is recognised in the income statement on holiday departure date and is stated after trade discounts, net of VAT and after any other sales taxes. Included within other operating income is commission received from resold tour packages. 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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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
2.
Accounting policies (continued)
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
2.
Accounting policies (continued)
Goodwill
Other intangible assets
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.
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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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
2.
Accounting policies (continued)
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
2.
Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
2.
Accounting policies (continued)
The Group designates certain derivatives as either: - Hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge) - Hedges of a particular risk associated with a recognised asset or liability or a highly probable forecast transaction (cash flow hedge); or - Hedges of a net investment in a foreign operation (net investment hedge). The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is recognised after more than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability.
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
2.
Accounting policies (continued)
The effective portion of changes in the fair value of derivatives, that are designated and qualify as cash flow hedges, are recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in the income statement within "Fair value gain/(loss) on foreign exchange forward contracts". Amounts accumulated in equity are reclassified to the income statement in the periods when the hedged item affects profit or loss (for example, when the forecast supplier payment that is hedged takes place). When a hedged forecast transaction results in the recognition of a non-financial asset (for example, inventory or fixed assets), the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset. These deferred amounts are ultimately recognised in cost of goods sold in the case of inventory or in depreciation in the case of fixed assets. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement within "Foreign exchange gain/(loss)". a) Critical judgments in applying the Group’s accounting policies The director believes that there are no critical judgments involved in applying the Group's accounting policies that warrant disclosure. b) Key accounting estimates and assumptions The director believes that there are no key accounting estimates and assumptions involved in applying the Group's accounting policies that warrant disclosure.
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Analysis of turnover by source market:
Page 27
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Page 28
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Page 29
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Page 30
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
12.
Taxation (continued)
There were no factors that may affect future tax charges.
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Page 32
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Page 33
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Page 34
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Page 35
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
The above bank loan is due to be repaid through 12 quarterly instalments followed by a final lump sum repayment in December 2022. The applicable interest rate will be fixed at 3.60%.
On 20 November 2020, the Group's existing bank loan was converted into a CBILS loan, resulting in £150,000 of restricted cash being released, a capital repayment holiday for the next 12 months and an extended repayment schedule over 5 years following the repayment holiday instead of the existing 3 year agreement. The CBILS loan will be due to be repaid through 20 quarterly instalments following the 12 month repayment holiday and will incur interest at a fixed rate of 3.60%. The above other loan consists of convertible loan notes which will be repayable in 8 quarterly instalments starting from April 2023 and ending in January 2025, if they have not been exercised beforehand. The applicable interest rate will be fixed at 5.00%. The full amount of the above other loan is subject to a subordinated undertaking in favour of the Civil Aviation Authority, in relation to the Group's ATOL licence and cannot be repaid without the Civil Aviation Authority's prior written consent. To support the above bank loan, a fixed and floating charge over the Group's assets was registered at Companies House on 3 September 2020 in favour of Barclays Bank PLC.
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Page 37
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
The Ordinary shares of £1 each carry full voting rights, full dividend rights and full rights to participation in any capital distribution on winding up.
On 14 November 2019, the Company issued 1 Ordinary share of £1 each, which was paid for at par. Additionally, on 23 December 2019, the Company issued 199,999 Ordinary shares of £1 each, which were paid for at par.
Page 38
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Foreign exchange reserve
Other reserves
Profit and loss account
Page 39
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Page 40
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
27.
Business combinations (continued)
At 30 September 2020, 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 ABTA and IATA travel bonds amounting to £591,939.
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £22,707. Contributions totalling £Nil were payable to the fund at the reporting date and are included in creditors.
Page 41
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
The following advances and credits to a director subsisted during the years ended 30 September 2019 and 30 September 2020:
The ultimate controlling party is Mr P Cleary, a director, by virtue of his majority holding in the issued share capital of the Company.
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WINTERFOLD LUXURY TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Page 43
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