Dragoman Overseas Travel Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02732524 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 December 2020

for

Dragoman Overseas Travel Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr C H K Hopkinson

Mr G Durie

Mr G B Manchester

SECRETARY:

Mr C H K Hopkinson

REGISTERED OFFICE:

Camp Green

Kenton Road

Debenham

Stowmarket

Suffolk

IP14 6LA

REGISTERED NUMBER:

02732524 (England and Wales)

ACCOUNTANTS:

Turner & Ellerby

Chartered Certified Accountants

5 Church Street

Framlingham

Woodbridge

Suffolk

IP13 9BQ

FIXED ASSETS

Tangible assets

4

736,623

628,165

CURRENT ASSETS

Stocks

15,226

17,195

Debtors

5

206,035

405,850

Cash at bank and in hand

1,276,829

2,196,909

1,498,090

2,619,954

CREDITORS

Amounts falling due within one year

6

884,826

2,145,923

NET CURRENT ASSETS

613,264

474,031

TOTAL ASSETS LESS CURRENT LIABILITIES

1,349,887

1,102,196

CREDITORS

Amounts falling due after more than one year

7

(459,593

)

(209,593

)

PROVISIONS FOR LIABILITIES

9

(49,268

)

(59,705

)

NET ASSETS

841,026

832,898

CAPITAL AND RESERVES

Called up share capital

30,000

30,000

Undistribuable Revaluation

Reserve

10

302,631

127,631

Retained earnings

508,395

675,267

SHAREHOLDERS' FUNDS

841,026

832,898

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 1 April 2021 and were signed on its behalf by:

Mr G Durie - Director

Mr C H K Hopkinson - Director

1.	STATUTORY INFORMATION

Dragoman Overseas Travel Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The COVID-19 pandemic has developed rapidly in 2020. The resulting impact of the virus on the operations and measures taken by various governments to contain the virus have negatively affected the company's results in the reporting period.

The currently known impacts of COVID-19 on the company are:

* A decline in revenues for the last 9 months of 2020 compared with the same period in 2019 of 100%.

* Parking up of the company's trucks and repatriation of all Tour Leaders until at least October 2021

* Repatriation of customers.

* Refunds paid to customers for cancelled trips where transfer to another date was not required.

These developments result in an operating/net loss of £205k and an operating cash outflow of £920k for the period.

In response to these matters, the entity has taken the following actions to manage our available cash reserves:

* We have reduced overheads by 75%.

* We have delayed all investment in new trucks.

* We have restructured the company involving redundancies from each department.

* We have part-time furloughed all remaining staff and are claiming the CJRS Grant.

* We have received HMRC grants for business closure (Additional Restrictions Grant) and are applying for the Restart Grant.

* We have cancelled all trips departing before October 2021 and scaled down our expectations beyond that date.

* We are taking bookings for departures after October 2021 but predominantly for 2022-2023 (£1.54m currently booked).

* We have obtained additional facilities of £250k from our bank (government CBIL's loan).

* We are applying for planning permission for development of the company property to strengthen the balance sheet.

The impact of COVID-19 on future performance and therefore on the measurement of some assets

and liabilities or on liquidity might be significant and might therefore require disclosure in the financial statements, but management has determined that they do not create a material uncertainty that casts significant doubt upon the entity’s ability to continue as a going concern.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

not provided

Improvements to property

-

5% on cost

Plant and machinery

-

25% on cost

Fixtures and fittings

-

15% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

The Company has adopted a policy of revaluing it's Freehold Property in accordance with the provisions of FRS 102 section 1a. As a result, the director's consider that Freehold Properties are shown at fair value.

Freehold properties are therefore not depreciated but are subject to regular revaluations and impairment reviews by the directors who will instruct independent valuations if needed.

Government grants & covid-19 support

Operating Grants, including the Job Retention Scheme and Small Business Grant Fund Income are recognised in the Profit & Loss Account in the period to which they relate and are included in Other Operating Income.

Where the Company has borrowed funds under Government provided Bounce Back Loans (BBL) or the Coronavirus Business Interruption Loan Scheme (CBILS), details of the amounts outstanding can be found in the balance sheet and related notes.

Interest charged on these loans during the first 12 months is to be settled by the Government. This additional Government Grant support is also included within Other Operating Income.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Forward currency contracts and other financial instruments are recognised at fair value on initial recognition. Fair value movements on forward contracts held at the balance sheet date are recognised in profit or loss.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 45 (2019 - 70 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

COST OR VALUATION

At 1 January 2020

275,000

61,020

145,219

Additions

-

-

14,702

Disposals

-

-

-

Revaluations

175,000

-

-

At 31 December 2020

450,000

61,020

159,921

DEPRECIATION

At 1 January 2020

-

35,885

129,856

Charge for year

-

3,816

10,952

Eliminated on disposal

-

-

-

At 31 December 2020

-

39,701

140,808

NET BOOK VALUE

At 31 December 2020

450,000

21,319

19,113

At 31 December 2019

275,000

25,135

15,363

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 January 2020

51,931

1,149,977

155,237

1,838,384

Additions

989

78,462

-

94,153

Disposals

-

(25,494

)

-

(25,494

)

Revaluations

-

-

-

175,000

At 31 December 2020

52,920

1,202,945

155,237

2,082,043

DEPRECIATION

At 1 January 2020

50,290

854,843

139,345

1,210,219

Charge for year

512

133,669

6,825

155,774

Eliminated on disposal

-

(20,573

)

-

(20,573

)

At 31 December 2020

50,802

967,939

146,170

1,345,420

NET BOOK VALUE

At 31 December 2020

2,118

235,006

9,067

736,623

At 31 December 2019

1,641

295,134

15,892

628,165

Cost or valuation at 31 December 2020 is represented by:

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

Valuation in 2020

302,631

-

-

Cost

147,369

61,020

159,921

450,000

61,020

159,921

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

Valuation in 2020

-

-

-

302,631

Cost

52,920

1,202,945

155,237

1,779,412

52,920

1,202,945

155,237

2,082,043

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

2020

2019

£

£

Cost

147,369

147,369

Freehold land and buildings were valued on an open market basis on 22 February 2021 by Clarke & Simpson Chartered Surveyors .

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

116,716

135,930

Tax

27,762

-

VAT

-

13,437

Prepayments and accrued income

61,557

256,483

206,035

405,850

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

719,380

1,607,345

Tax

-

29,078

Social security and other taxes

6,447

31,608

VAT

136

-

Accrued expenses

158,863

477,892

884,826

2,145,923

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans (see note 8)

250,000

-

Other loans (see note 8)

209,593

209,593

459,593

209,593

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

250,000

-

8.

LOANS

An analysis of the maturity of loans is given below:

2020

2019

£

£

Amounts falling due between one and two years:

Dragoman Travel Limited

209,593

209,593

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

250,000

-

9.	PROVISIONS FOR LIABILITIES

2020

2019

£

£

Deferred tax

49,268

59,705

Deferred

tax

£

Balance at 1 January 2020

59,705

Credit to Income Statement during year

(10,437

)

Balance at 31 December 2020

49,268

10.

RESERVES

Undistribuable

Revaluation

Reserve

£

At 1 January 2020

127,631

Revaluation in year

175,000

At 31 December 2020

302,631