REGISTERED NUMBER: 02885223 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 |
FOR |
ALTERNATIVE AIRLINES LTD |
REGISTERED NUMBER: 02885223 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 |
FOR |
ALTERNATIVE AIRLINES LTD |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
ALTERNATIVE AIRLINES LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
178-180 Church Road |
Hove, East Sussex |
BN3 2DJ |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31st October 2023. |
REVIEW OF BUSINESS |
The results of the Company for the financial year, as set out on pages 8-23, show a revenue of £75.1m (2022 £67.4m) and profit before tax of £6.7m (2022 £8.1m). This represents a 11% increase in revenue from 2022 and shows a sustainable strong performance following rapid growth in the previous two years. |
Alternative Airlines is a flight search and booking site, www.alternativeairlines.com, that provides a quick, easy and personalised way to book flights online with the support of an expert Customer Service Team. With a choice of 600+ global airlines, including all major carriers as well as smaller airlines, the site has developed proprietary technology to offer customers more flight options. |
During the 2023 Financial Year, Alternative Airlines has continued to see growth in its key markets of US and UK whilst also seeing a better performance in other English speaking countries notably UAE, Australia, New Zealand and increased presence in Asia particularly Singapore and Malaysia. The company has continued to invest in developing the flight search and booking platform by integrating new airline technology companies to increase flight options and new payment options to increase consumer choice alongside its focus on providing excellent customer service. |
Profitability remains strong in this financial year, declining slightly on 2022. This reflects a reduction in FX gains that were experienced in 2022 but also an investment in headcount in the business, particularly within our Technology and Customer Service teams, and new office premises during this financial year in preparation for further growth plans in future years. |
The strategy of continual development on the product offering, reducing the reliance on any one market, airline or product combined with cost control measures has created diversification for the business as well significant growth opportunities. |
The Company has strong reserves, including a robust cash reserve, which continues to support growth and technology investment. The Company's balance sheet reflects shareholder funds £10.1m with a cash position of £12.9m. |
Alternative Airlines' subsidiary has enjoyed another positive financial performance during a period of significant revenue growth. The results reflect the increasing revenues enjoyed from the UK outbound market, by the airlines which have contracted Flight Directors as their exclusive sales representatives. The rise in costs of sales indicates a major investment in people, as the team was strengthened in all areas, including management and sales, in a year of strategic corporate development. The expectation is that the trends established during 2022/3 will continue throughout 2023/4. |
Alternative Airlines' revenue is highly dependent on transaction volumes in the global travel industry, particularly air travel. The aviation industry continues to grow back towards levels seen before the Covid-19 pandemic, with the expectations of passengers increasing. Alternative Airlines is well positioned to see continued growth in the 2024 Financial Year as demand for travel continues to remain strong alongside the strong impact of Alternative Airlines' proprietary technology and strategy which meets passenger expectations around choice and the desire for convenient booking processes. |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Geopolitical and Economic Risk |
Trends in the travel industry have a direct impact on the performance of the Company. Global economic issues and unpredictable events such as political instability, war, terrorist incidents, health epidemics and unusual weather patterns provide significant uncertainty in the travel industry and consumer discretionary spend. Any future downturn in the industry would correlate with the Company's business prospects and financial position. |
Our key strategy for mitigating these risks is to respond to these changes in product demand with appropriate product offerings and maintaining diversification in what we offer to customers and where we offer it. |
Website Risk |
If the Company's systems are not expanded to handle increased demand from consumers, or the system fails to perform, this could lead to significant service disruption, slower processing times and adverse impacts on customer service. Any of these issues could cause a decline in the Company's business prospects and financial position. |
The Company's technology team is dedicated to ensuring the website and supporting systems are efficient and robust. We regularly maintain our website, applying security patches, updating software, and performing backups to prevent service disruptions caused by technical issues. |
We use a range of monitoring tools to track website performance, identify potential issues, and take proactive steps to address them before they become major problems. These tools provide real-time visibility into our website's performance, including uptime, response times, and error rates. We also use analytics tools to gain insights into website traffic and user behaviour, helping us optimize our website for better performance and user experience. By closely monitoring our website's performance, we can quickly identify and address any issues that could potentially lead to downtime or service disruptions, ensuring the continued availability and reliability of our online services. |
Liquidity Risk |
The Group aims to mitigate liquidity risk by managing cash generated by its operations and maintaining significant cash reserves. |
Credit Risk |
The Group has external debtors however we have invested in strong relationships with them and hold a good position in terms of settlement times. Credit risk assumed through our Buy Now Pay Later product offerings is mitigated by the use of merchants who organise these agreements and inherit the risk. |
Foreign Currency Risk |
The Group reviews its foreign currency exposure on an ongoing basis and closely monitors the level of foreign currencies held and changes in exchange rates. The Group seeks to find the most optimal ways to hold and exchange its cash reserves using a variety of financial technologies available. |
The Group does offer the use of digital currency as a payment method on its website. The Group does not hold digital currency themselves but all related customer payments are processed through a third party payment gateway and settled directly to the Company in fiat currency. The exchange rate used for settlement is established at the point of purchase and ensures that we are not at risk of large fluctuations in the digital currency market. |
ON BEHALF OF THE BOARD: |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31st October 2023. |
DIVIDENDS |
An interim dividend of £28.20 per share was paid on 31st October 2023. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31st October 2023 will be £ 2,820,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st November 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently; |
- | make judgements 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 company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Parkers, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALTERNATIVE AIRLINES LTD |
Opinion |
We have audited the financial statements of Alternative Airlines Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st October 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31st October 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALTERNATIVE AIRLINES LTD |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALTERNATIVE AIRLINES LTD |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK pensions legislation and UK tax legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the recognition of call fees income, where there may be incentive for manipulation of profits, which could be achieved through the manipulation of estimates such as call fees deferred income and foreign exchange rates where there may be incentive for manipulation of profits, which could be achieved through the manipulation of estimates such as foreign exchange rates.. Audit procedures performed by the engagement team included: |
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; |
- Review of foreign exchange rates used to ensure they are in line with daily rates. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
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 Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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 |
178-180 Church Road |
Hove, East Sussex |
BN3 2DJ |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 76,205,074 | 67,901,861 |
Cost of sales | 59,428,932 | 51,995,616 |
GROSS PROFIT | 16,776,142 | 15,906,245 |
Administrative expenses | 9,875,022 | 7,595,359 |
6,901,120 | 8,310,886 |
Other operating income | - | 167 |
OPERATING PROFIT | 5 | 6,901,120 | 8,311,053 |
Interest receivable and similar income | 51,844 | - |
6,952,964 | 8,311,053 |
Interest payable and similar expenses | 6 | 15,675 | 6,552 |
PROFIT BEFORE TAXATION | 6,937,289 | 8,304,501 |
Tax on profit | 7 | 1,429,340 | 1,223,584 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 5,507,949 | 7,080,917 |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 5,507,949 | 7,080,917 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
5,507,949 |
7,080,917 |
Total comprehensive income attributable to: |
Owners of the parent | 5,507,949 | 7,080,917 |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
CONSOLIDATED BALANCE SHEET |
31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 26,142 | - |
Tangible assets | 11 | 99,662 | 51,600 |
Investments | 12 | - | - |
125,804 | 51,600 |
CURRENT ASSETS |
Debtors | 13 | 3,014,609 | 1,465,969 |
Cash at bank and in hand | 13,401,002 | 13,525,687 |
16,415,611 | 14,991,656 |
CREDITORS |
Amounts falling due within one year | 14 | 6,993,788 | 8,059,941 |
NET CURRENT ASSETS | 9,421,823 | 6,931,715 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,547,627 |
6,983,315 |
CREDITORS |
Amounts falling due after more than one year |
15 |
15,833 |
139,470 |
NET ASSETS | 9,531,794 | 6,843,845 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 100,000 | 100,000 |
Retained earnings | 19 | 9,431,794 | 6,743,845 |
SHAREHOLDERS' FUNDS | 9,531,794 | 6,843,845 |
The financial statements were approved by the Board of Directors and authorised for issue on 22nd March 2024 and were signed on its behalf by: |
S P Argyle - Director |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
COMPANY BALANCE SHEET |
31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 5,300,845 | 6,828,654 |
The financial statements were approved by the Board of Directors and authorised for issue on |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st November 2021 | 100,000 | 2,322,928 | 2,422,928 |
Changes in equity |
Dividends | - | (2,660,000 | ) | (2,660,000 | ) |
Total comprehensive income | - | 7,080,917 | 7,080,917 |
Balance at 31st October 2022 | 100,000 | 6,743,845 | 6,843,845 |
Changes in equity |
Dividends | - | (2,820,000 | ) | (2,820,000 | ) |
Total comprehensive income | - | 5,507,949 | 5,507,949 |
Balance at 31st October 2023 | 100,000 | 9,431,794 | 9,531,794 |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st November 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st October 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st October 2023 |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 3,995,686 | 13,676,602 |
Interest paid | (15,675 | ) | (6,552 | ) |
Taxation paid | (1,196,645 | ) | (873,164 | ) |
Taxation refund | 20,685 | 11,461 |
Net cash from operating activities | 2,804,051 | 12,808,347 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (28,275 | ) | - |
Purchase of tangible fixed assets | (78,879 | ) | (37,596 | ) |
Interest received | 51,844 | - |
Net cash from investing activities | (55,310 | ) | (37,596 | ) |
Cash flows from financing activities |
Loan repayments in year | (55,455 | ) | (55,455 | ) |
Amount introduced by directors | - | 60,317 |
Amount withdrawn by directors | 2,029 | (1,232 | ) |
Equity dividends paid | (2,820,000 | ) | (3,049,000 | ) |
Net cash from financing activities | (2,873,426 | ) | (3,045,370 | ) |
(Decrease)/increase in cash and cash equivalents | (124,685 | ) | 9,725,381 |
Cash and cash equivalents at beginning of year |
2 |
13,525,687 |
3,800,306 |
Cash and cash equivalents at end of year |
2 |
13,401,002 |
13,525,687 |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 6,937,289 | 8,304,501 |
Depreciation charges | 32,950 | 27,528 |
Finance costs | 15,675 | 6,552 |
Finance income | (51,844 | ) | - |
6,934,070 | 8,338,581 |
(Increase)/decrease in trade and other debtors | (1,531,412 | ) | 800,495 |
(Decrease)/increase in trade and other creditors | (1,406,972 | ) | 4,537,526 |
Cash generated from operations | 3,995,686 | 13,676,602 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st October 2023 |
31/10/23 | 1/11/22 |
£ | £ |
Cash and cash equivalents | 13,401,002 | 13,525,687 |
Year ended 31st October 2022 |
31/10/22 | 1/11/21 |
£ | £ |
Cash and cash equivalents | 13,525,687 | 3,800,306 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/11/22 | Cash flow | At 31/10/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 13,525,687 | (124,685 | ) | 13,401,002 |
13,525,687 | (124,685 | ) | 13,401,002 |
Debt |
Debts falling due within 1 year | (55,455 | ) | (68,213 | ) | (123,668 | ) |
Debts falling due after 1 year | (139,470 | ) | 123,637 | (15,833 | ) |
(194,925 | ) | 55,424 | (139,501 | ) |
Total | 13,330,762 | (69,261 | ) | 13,261,501 |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
1. | STATUTORY INFORMATION |
Alternative Airlines Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
No significant judgements have had to be made by the directors in preparing these financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Impairment of non-financial assets |
At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 11,373,758 | 6,443,709 |
Europe | 3,672,153 | 2,939,792 |
Rest of World | 61,159,163 | 58,518,360 |
76,205,074 | 67,901,861 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 3,483,626 | 2,684,390 |
Social security costs | 336,957 | 300,716 |
Other pension costs | 77,958 | 52,538 |
3,898,541 | 3,037,644 |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors & Management | 3 | 3 |
Operations & administration | 103 | 67 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 486,368 | 796,327 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 256,368 | 540,000 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Other operating leases | 64,702 | 45,864 |
Depreciation - owned assets | 30,818 | 27,529 |
Computer software amortisation | 2,133 | - |
Auditors' remuneration | 13,080 | 11,910 |
Foreign exchange differences | 196 | 398 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 15,675 | 6,552 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 1,429,340 | 1,223,584 |
Tax on profit | 1,429,340 | 1,223,584 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Interim | 2,820,000 | 2,660,000 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
software |
£ |
COST |
Additions | 28,275 |
At 31st October 2023 | 28,275 |
AMORTISATION |
Amortisation for year | 2,133 |
At 31st October 2023 | 2,133 |
NET BOOK VALUE |
At 31st October 2023 | 26,142 |
Company |
Computer |
software |
£ |
COST |
Additions |
At 31st October 2023 |
AMORTISATION |
Amortisation for year |
At 31st October 2023 |
NET BOOK VALUE |
At 31st October 2023 |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1st November 2022 | 50,607 | 39,115 | 94,181 | 183,903 |
Additions | 7,069 | 40,859 | 30,952 | 78,880 |
At 31st October 2023 | 57,676 | 79,974 | 125,133 | 262,783 |
DEPRECIATION |
At 1st November 2022 | 45,404 | 32,371 | 54,528 | 132,303 |
Charge for year | 3,584 | 8,290 | 18,944 | 30,818 |
At 31st October 2023 | 48,988 | 40,661 | 73,472 | 163,121 |
NET BOOK VALUE |
At 31st October 2023 | 8,688 | 39,313 | 51,661 | 99,662 |
At 31st October 2022 | 5,203 | 6,744 | 39,653 | 51,600 |
Company |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1st November 2022 |
Additions |
At 31st October 2023 |
DEPRECIATION |
At 1st November 2022 |
Charge for year |
At 31st October 2023 |
NET BOOK VALUE |
At 31st October 2023 |
At 31st October 2022 |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st November 2022 |
and 31st October 2023 |
PROVISIONS |
At 1st November 2022 |
and 31st October 2023 | 20,000 |
NET BOOK VALUE |
At 31st October 2023 |
At 31st October 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
13. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 795,356 | 771,377 |
Amounts owed by group undertakings | - | - |
Other debtors | 228,003 | 276,948 |
Directors' current accounts | 53,321 | 63,918 | - | - |
Tax | 6,603 | 19,603 |
VAT | 19,539 | 51,404 |
Prepayments | 1,895,646 | 258,893 |
2,998,468 | 1,442,143 |
Amounts falling due after more than one | year: |
Tax | 16,141 | 23,826 |
Aggregate amounts | 3,014,609 | 1,465,969 |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 123,668 | 55,455 |
Trade creditors | 404,794 | 3,354,450 |
Tax | 958,057 | 725,600 |
Social security and other taxes | 129,926 | 166,988 |
Other creditors | 159,975 | 550,862 |
Accruals and deferred income | 5,217,368 | 3,206,586 |
6,993,788 | 8,059,941 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 16) | 15,833 | 139,470 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 123,668 | 55,455 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 10,000 | 55,455 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 5,833 | 84,015 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Company |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
ALTERNATIVE AIRLINES LTD (REGISTERED NUMBER: 02885223) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100,000 | 100,000 |
19. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1st November 2022 | 6,743,845 |
Profit for the year | 5,507,949 |
Dividends | (2,820,000 | ) |
At 31st October 2023 | 9,431,794 |
Company |
Retained |
earnings |
£ |
At 1st November 2022 |
Profit for the year |
Dividends | ( |
) |
At 31st October 2023 |
20. | ULTIMATE CONTROLLING PARTY |
The controlling party is S P Argyle. |