Company Registration No. 1464578 (England and Wales)
BON VOYAGE TRAVEL & TOURS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2020
PAGES FOR FILING WITH REGISTRAR
BON VOYAGE TRAVEL & TOURS LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2020
31 October 2020
1
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
269,536
281,366
Current assets
Debtors
4
199,236
83,600
Cash at bank and in hand
1,120,555
1,244,696
1,319,791
1,328,296
Creditors: amounts falling due within one year
5
(813,939)
(656,933)
Net current assets
505,852
671,363
775,388
952,729
Creditors: amounts falling due after more than one year
6
(590,000)
Net assets
185,388
952,729
Capital and reserves
Called up share capital
7
30,000
30,000
Capital redemption reserve
95,335
95,335
Profit and loss reserves
60,053
827,394
185,388
952,729
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
BON VOYAGE TRAVEL & TOURS LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 OCTOBER 2020
31 October 2020
2
The financial statements were approved by the board of directors and authorised for issue on 19 March 2021 and are signed on its behalf by:
Mr W Gillan
Director
Company Registration No. 1464578
BON VOYAGE TRAVEL & TOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2020
3
1
Accounting policies
Company information
Bon Voyage Travel & Tours Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
16 - 18 Bellevue Road, Southampton, Hampshire, United Kingdom, SO15 2AY.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention and on the going concern basis. Additional information relating to going concern is included in note 11 to the accounts. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of
turnover is recognised in accordance with the booking arrangements with the company's customers. Deposits are non-refundable and are recognised when received by the company. The balance is recognised when received, which under the company's terms falls due no later than 10 weeks before departure, or immediately if booking is within these 10 weeks.
1.3
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Buildings
2% Straight line
Freehold improvements
15% Reducing balance
Fixtures, fittings & equipment
15% - 33% Straight line
Website
20% Straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
BON VOYAGE TRAVEL & TOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
1
Accounting policies (Continued)
4
1.4
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand
and
deposits held at banks
.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
1.6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
BON VOYAGE TRAVEL & TOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
1
Accounting policies (Continued)
5
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.7
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.8
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.9
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.10
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
BON VOYAGE TRAVEL & TOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
6
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
24
25
3
Tangible fixed assets
Buildings
Freehold improvements
Fixtures, fittings & equipment
Website
Total
£
£
£
£
£
Cost
At 1 November 2019
518,588
73,581
161,945
86,293
840,407
Additions
8,907
8,907
Disposals
(9,603)
(9,603)
At 31 October 2020
518,588
73,581
161,249
86,293
839,711
Depreciation and impairment
At 1 November 2019
257,659
61,029
154,060
86,293
559,041
Depreciation charged in the year
10,372
1,882
8,483
20,737
Eliminated in respect of disposals
(9,603)
(9,603)
At 31 October 2020
268,031
62,911
152,940
86,293
570,175
Carrying amount
At 31 October 2020
250,557
10,670
8,309
269,536
At 31 October 2019
260,929
12,552
7,885
281,366
BON VOYAGE TRAVEL & TOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
7
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
149,287
26,305
Other debtors
49,949
57,295
199,236
83,600
5
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
10,000
Trade creditors
752,071
606,590
Taxation and social security
17,115
30,961
Other creditors
34,753
19,382
813,939
656,933
6
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
590,000
Creditors which fall due after five years are as follows:
2020
2019
£
£
Payable by instalments
110,000
-
7
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
30,000 ordinary shares of £1 each
30,000
30,000
BON VOYAGE TRAVEL & TOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
8
8
Secured assets
The Association of British Travel Agents require its members to provide annual bonds to secure the monies and benefits of their clients in the event of failure of a member. These bonds, together with other bonds provided to suppliers, are provided by the company's bankers and amounted to £52,962
at the 31 October 2020 (2019: £52,951). In order to obtain these bonds, the company has granted a fixed charge over its freehold property in favour of Barclays Bank Plc.
These financial statements include the company's full liabilities to its creditors, and consequently this bonding arrangement is not considered to constitute a contingent liability.
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
Total operating lease commitments
4,987
8,754
At the balance sheet date the above operating lease commitments represented outstanding rental obligations for two different items of office equipment used by the company.
10
Pension commitments
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
The annual commitment under this scheme is for contributions of £15,974
(
20
1
9
: £13,066).
11
Covid-19 Impact Statement
After forty years of successful trading, the decisions by UK, US and Canadian governments to close international borders to all but essential travel have created extreme damage to our business. As an organiser of upmarket holidays to the USA and Canada, it is not easy for us to “pivot” our business model to other geographical areas in the short term. We firmly believe – supported by research carried out by independent agencies – that demand for travel to these destinations will recover to pre-crisis levels and beyond, once the crisis is behind us. Retaining our team of highly skilled staff is critical to the on-going viability of the business; our expertise in our specialist field is our USP.
BON VOYAGE TRAVEL & TOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
11
Covid-19 Impact Statement (Continued)
9
An extensive furlough programme was instigated at the end of March 2020 to take advantage of the government's CJRS to underwrite staff costs. This has resulted in cost reductions of £167,995 for 19/20 & forecast £184,697 for 20/21 in previously budgeted staff costs. Senior management took voluntary salary reductions and reductions in benefits in kind for 19/20 and for 20/21 to further reduce overhead costs. We also received the local government retail grant - £25k - and the business rate relief scheme of £12k.
In March 2020 we were working on the assumption that travel would likely resume in the Autumn of 2020. When it became apparent that an Autumn resumption was unlikely, we approached the company's bankers, Barclays, to arrange CBIL funding in the amount of £600k. Further re-budgeting took place at this time, anticipating a lifting of restrictions on US/Canada travel in spring 2021.
Our forward funding calculations have been based on the pre-crisis budget, that has been adjusted to reflect both the reduction of income from sales and the reduction in costs/overheads that have been achieved since the beginning of the crisis. The underlying assumptions are 1. US and Canada borders will start to open and UK FCO travel advise against non-essential travel will start to ease in the Spring of 2021. 2. That as a consequence, customer confidence will improve, and new bookings will start to flow again. 3. That the retained/re-scheduled bookings from 2020 will be able to operate from Spring/Summer 2021 alongside new bookings. 4. That a measure of pent-up demand will lead to a modest but sustainable increase in volumes over subsequent travel periods. We anticipate that a Spring relaxation of travel restrictions will allow for a partial recovery in 2021, with a return to full profitability in 2021/22 FY.
We are working hard to retain our highly skilled and efficient team. If we do lose some staff, we anticipate recruitment will prove relatively straightforward, due to the generally high job losses in the travel industry, particularly in our region.
The UK government will publish updated guidance on the timetable for reopening travel on 12th April 2021. In any event, international travel will not restart until 17th May 2021. Until borders start to re-open and UK Government advice on international travel changes, we are unable to “drive performance” per se. Until these factors move in our favour, our strategy remains to control costs and preserve cash, to retain skilled staff and to maintain our brand reputation.
Our focus during the pandemic has been on ensuring affected customers have been dealt with fairly and promptly (complying with PTRs, unlike many travel businesses) and maintaining contact with existing customers and potential new customers through marketing emails and social media. We believe that this communication strategy adopted during the pandemic will serve us well to enhance our reputation in years to come. We rely heavily on customer generated feedback and personal recommendations to create new business, and a good reputation through tough times will be invaluable in the months and years ahead.
BON VOYAGE TRAVEL & TOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
11
Covid-19 Impact Statement (Continued)
10
In its past the company has overcome the challenges of previous pandemics such as Sars and Zika virus, disruptive conflicts such as the two Gulf wars and the 9/11 attacks. The Covid-19 pandemic has presented our biggest challenge yet, but we believe we have the resourcefulness to bounce back. Historically we have maintained significant levels of retained earnings and cash in order to provide resilience against these challenges. The pandemic has seriously impacted our reserves but cash balances remain strong, which gives us every reason to believe that we are well placed to start building our reserves again once external conditions allow.
In summary we have been a thriving and profitable enterprise for 40 years with a successful business model based on selling complex tailor-made travel arrangements to North America. Our highly trained team are experts in their field with a wealth of knowledge and experience. The sales team are supported by a sophisticated accounts, administration, marketing and IT operation giving us what has been a stable and predictable income stream.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report on these financial statements was unqualified and there were no matters to which the auditor drew attention by way of emphasis. The auditor's report was signed on 29 March 2021 by
Chris Goodhead (senior statutory auditor)
for and on behalf of
Knight Goodhead
Limited
(statutory
auditor
)
.
2020-10-31
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false
29 March 2021
CCH Software
CCH Accounts Production 2021.100
No description of principal activity
This audit opinion is unqualified
Mr A Wilson
Mr W Gillan
Mr P Newcombe
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