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Registered number: 05071391
EXPERIENCE TRAVEL GROUP LTD
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 APRIL 2022
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EXPERIENCE TRAVEL GROUP LTD
COMPANY INFORMATION
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EXPERIENCE TRAVEL GROUP LTD
CONTENTS
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Statement of financial position
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Notes to the financial statements
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EXPERIENCE TRAVEL GROUP LTD
REGISTERED NUMBER: 05071391
STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2022
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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EXPERIENCE TRAVEL GROUP LTD
REGISTERED NUMBER: 05071391
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 APRIL 2022
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 July 2022.
The notes on pages 3 to 14 form part of these financial statements.
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EXPERIENCE TRAVEL GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
Experience Travel Group Limited is a private company limited by shares incorporated in England, United Kingdom. The address of the registered office is 8th Floor, Becket House, 36 Old Jewry, London, EC2R 8DD. The trading address of the company is 7 Prescott Place, Clapham, London, SW4 6BS.
The nature of the company's operations and principal activities are that of a specialist tour operator.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of 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 management to exercise judgment in applying the Company's accounting policies.
Turnover represents amounts receivable and received for holidays travelled in the year and those non refundable deposits for future departures excluding value added tax. Income is recognised on a departure date basis. Cancellation income is recognised at the date of cancellation
Following on from the COVID-19 pandemic, the majority of the destinations offered by the Company are now open to travel, reasonably free from any remaining restrictions.
The exception to this is Sri Lanka, which is experiencing politic unrest and economic hardship. The FCDO is currently advising against all but essential travel. The Company is managing this situation by postponing, cancelling or changing destination of those bookings due to depart to Sri Lanka this summer. Some customers have chosen to travel anyway, where suitable insurance is available to them. The Company is confident that, with a new government in place, FCDO advice will be lifted by mid-August and that the winter season won’t be adversely affected.
The current and future financial position of the Company, its cash flows and liquidity position have been reviewed by the directors. They have been prepared with a prudent view in regard particularly to Sri Lanka bookings, and have been stress tested to ensure that cash flows and liquidity are sufficiently robust to allow the Company to continue to trade. It should be noted that Sri Lanka is only part of a strong portfolio of countries offered. The directors are confident that the existing funding facilities will provide sufficient headroom to meet the forecast cash requirements during the twelve months from the date of approval of the financial statements.
Although it is not possible to reliably estimate the length of severity of the unrest in Sri Lanka or the COVID-19 outbreak and its long term impact, at the date of approving the financial statements, the directors are confident that the existing funding facilities will provide sufficient headroom to meet the forecast cash requirements during the twelve months from the date of approval of the financial statements having considered any additional requirements that would be contingent on a downturn in activity over the same period.
The directors consider it appropriate to prepare the financial statements on a going concern basis.
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EXPERIENCE TRAVEL GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the profit and loss account in the same period as the related expenditure.
During the year the Company benefited from taking advantage of government support in the form of the Coronavirus Job Retention Scheme (CJRS) and local government support (see note 3).
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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EXPERIENCE TRAVEL GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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Advance receipts and payments
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All revenue relating to tours with departure dates after the year end are treated as advance receipts at the balance sheet date and are separately disclosed in other creditors. Payments made to suppliers in respect of these tours are included in prepayments and accrued income.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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EXPERIENCE TRAVEL GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
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.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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EXPERIENCE TRAVEL GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting 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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EXPERIENCE TRAVEL GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.
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Local government grants receivable
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Government grants receivable - Coronavirus Job Retention Scheme
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The average monthly number of employees, including directors, during the year was 14 (2021 - 17).
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EXPERIENCE TRAVEL GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
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Charge for the year on owned assets
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EXPERIENCE TRAVEL GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
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Charge for the year on owned assets
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Prepayments and deferred cost
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Prepayments and deferred cost includes £137,996 (2021: £151,574) of amounts paid to suppliers in respect of future departures.
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EXPERIENCE TRAVEL GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Accruals and deferred income in the above and below includes £472,925 (2021: £487,556) of amounts received from customers in respect of future departures.
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Creditors: Amounts falling due after more than one year
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Accruals and deferred income
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At the year end £95,000 (2021: £95,000) is due to R A Armstrong.
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EXPERIENCE TRAVEL GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
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Amounts falling due within one year
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Amounts falling due 2-5 years
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During the previous year, a Government backed Coronavirus Business Interruption Loan (CBIL) was taken by the Company amounting to £250,000. This is repayable in 5 years.
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EXPERIENCE TRAVEL GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
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Charged to profit or loss
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The deferred tax asset is made up as follows:
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Accelerated capital allowances
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Losses and other deductions
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Share premium account
This reserve records the amount above the nominal value received for shares sold, less transaction costs.
Profit and loss account
Profit and loss account includes all current and prior year retained profits.
As at 30 April 2022, there were contingent liabilities given by the Company in the normal course of business in respect of an insurance backed ABTA bond, amounting to £132,515 (2021: £160,380).
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £9,287 (2021: £10,584). Contributions totalling £2,925 (2021: £2,465) were payable to the fund at the balance sheet date.
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EXPERIENCE TRAVEL GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
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Commitments under operating leases
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At 30 April 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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17.Other financial commitments
The Company enters into forward contracts to mitigate the exchange rate risk for future currency payables. At 30 April 2022, the Company is committed to selling £1,246,969 (2021: £809,617) and receiving a fixed amount of USD, THB, INR & SGD. The outstanding contracts all mature within 24 months.
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Related party transactions
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During the year the company made advancements to a director amounting to £209 (2021: £6,260). £619 (2021: £9,420) of this was repaid during the year, leaving a balance of £410 (2021: £Nil) owed by the Company at the year end.
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The ultimate controlling parties are T A Armstrong and S G Clark, who have the majority of joint equal shareholdings.
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