JUST_GO_HOLIDAYS_LIMITED - Accounts

The directors present the strategic report for the year ended 31 December 2021.

The Company is the tour operating business of the JG Travel Group ("The Group"), which operates a number of travel brands, including Just Go! Holidays, National Holidays, Omega Breaks and Albion Journeys. The market-leading coach holidays brand National Holidays was added to the portfolio in 2020 via the acquisition of the rights to this brand, providing the opportunity to step change the long-term performance and profitability of the Group.

The Group is backed by Kings Park Capital, a private equity firm specialising in investments in the leisure sector. KPC’s financial and strategic backing has enabled the Group to acquire Omega Holidays Group in September 2017 and acquire the rights to the National Holidays brand and database in 2020.

In line with the other businesses in the travel and leisure sector, the Group continued to be negatively affected by Covid-19 in 2021, and the Government restrictions in relation to the pandemic meant that tours could only depart from May onwards. As a result, the cost base could only be covered by circa 7 months of revenue and tour profits instead of 12 months, and the management continued to take action to preserve liquidity and to protect the Group’s future through the year.

The revenues in the 7-month operational period were £27m , showing a significant increase from £2.7m achieved in the Covid-19 affected 2020 trading period, and the full year trading in 2019 of £25.6m . This shows the underlying revenue generating capabilities of the Group once external and unprecedented factors cease to impact its operations. Indeed, even though the 2022 bookings were impacted temporarily by the Omicron variant of Covid-19 in December 2021 and January and February 2022, the 2022 revenue is expected to be at a record level for the Group.

As a result of this strong growth evident in the current year, the Board believes that this significant demand for the Group’s products will continue and will lead to even higher revenues in 2023, underpinned by the strength of the Group’s brands and the desire of our customers to enjoy travelling again post-pandemic.

Market Risk

The market risks to the business revolve around demand for the products offered and the different reactions of its brands to the economic situation.

As the traditional Just Go! core target market is the retired demographic with fixed incomes, discretionary spending is sensitive to inflation and interest rates although there has been no reduced demand in 2022 from these factors.

The addition of the brands Omega Breaks and National Holidays in recent years has mitigated this risk to a degree,as they typically serve a younger demographic, however their Mosaic profile does mean they are potentially more affected by cost-of-living changes.

The Group mitigates this risk by remaining as competitive as possible, developing new and exciting products, focusing on offering good value for money, and ensuring it understands and pre-empts the changing demands of its customers.

The Group business model is generally low risk, with its asset-light nature of operations and carefully managed levels of commitments.

Terrorism

Terrorism does pose a threat to the demand for travel. Whilst the business is not immune to the threat of terrorism the risk is mitigated to some extent by the range of destinations offered.

Impact of Covid-19

The business has been impacted by Covid-19 in the period 2020 to early 2022, however, it has successfully navigated the issues created, maintaining excellent relationships with customers and suppliers.

Financial Risk Management

The group's financial instruments comprise cash at bank, intercompany loans and various items such as trade debtors and trade creditors that arise directly from operations. The main purpose of these financial instruments is to raise adequate finance for the group's operations.

The exchange rate between the Euro and Sterling would normally create a financial risk to the business, but it constantly monitors these to ensure risk is mitigated and enters conservative hedging arrangements, where appropriate.

Liquidity

The Group’s operations are seasonal in nature, but follow established annual patterns. Cash management is management’s key area of focus, and cash forecasts are prepared on a regular basis to monitor and address any potential liquidity issues before they arise.

Health and Safety

The Group operates full Covid Safety Standards as outlined by UK Government, overseas governments, where relevant, and the travel membership bodies it is a member of.

Management has robust health and safety monitoring systems and standards in place, and the Board is appraised of any H&S issues, and receives regular comprehensive reports.

The volume of passengers traveling has increased with the addition of the National Holidays brand and all Health and Safety polices have been reviewed considering this and adapted where needed.

Business Continuity

The Group maintains a business continuity plan to ensure the business functions in the event of disruption. The Group undertakes regular risk assessment, uses a varied pool of suppliers and maintains a disaster recovery plan.

Technology and Cyber Security

The Group heavily relies on the functioning of its technology infrastructure and websites to help operate its business and manage customer data. Appropriate arrangements have been made to ensure adequate response in the event of failure in any part of the Group’s systems and network, underpinned by continuing technology investment.

Employees

Our staff are an integral part of the continuing success of our business. The recruitment environment within the travel sector remains highly competitive, and the Group strives to be an employer of choice given its high standards of business conduct, commitment to employee’s health & wellbeing and attractive remuneration packages reflecting the market environment in which we operate.

Future Developments

Whilst we continue to develop the Just Go! Holidays, Omega Breaks and Albion Journeys brands the addition of the National Holidays brand has provided us with the opportunity to step change the business’s performance and profitability, with the increased revenues in a shorter touring period in 2021 showcasing this opportunity.

Indeed, the growth in the revenues for 2021, in only a 7-month touring period, compared to 2019, in a full year touring period, show the impact this addition has already made. With 2022 revenue projected at a record level and the revenue for 2023 forecast to be even higher the outlook is extremely positive.

This growth will enable us to cement our position as the tour operator of reference in the domestic and short-haul group holidays market. The Directors expect that the Group’s brands’ positioning and product offering will allow it to meet the increased demand for UK-based holidays, both driven by domestic and inbound customers, as well as short-haul breaks on the Continent.

The directors realise the benefit of KPIs as a business development tool, but due to the impact of the Covid-19 pandemic in 2021 do not believe these are relevant for this trading period.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2021.

The principal activity of the company continued to be that of a group tour operator.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors are responsible for preparing the annual report 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risks and future developments.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Just Go Holidays Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 company's affairs as at 31 December 2021 and of its loss 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

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, or returns adequate for our audit have not been received from branches not visited by us; or

•     the financial statements are not in agreement with the accounting records and returns; or

•     certain disclosures of remuneration specified by law are not made; or

•     we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, 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 is 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 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 company or to cease operations, or have no realistic alternative but to do so.

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 auditor's 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 an auditor's 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, as a body, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Just Go Holidays Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, 111 High Street, Cheltenham, Gloucestershire, United Kingdom, GL50 1DW.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of JG Travel Group Limited. These consolidated financial statements are available from its registered office, which is the same as that found on the Company Information page.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose related party transactions with wholly owned subsidiaries within the group.

In line with the other businesses in the travel and leisure sector, the Company continued to be negatively affected by Covid-19 in 2021, and the Government restrictions in relation to the pandemic meant that tours could only depart from May onwards. As a result, the cost base could only be covered by circa 7 months of Revenue and tour profits instead of 12 months, and the management continued to take action to preserve liquidity and to protect the Company’s future through the year.true

During 2020, a parent company within the Group also managed to secure both new long-term bank funding and a restructure of existing debt to assist the current and future financial position. Other long term investor loans are also in place to support the group. The ultimate parent JGH Topco Limited and its fellow group undertakings, together with certain related parties have also confirmed their current intention to continue to provide operational and financial support.

In this shortened 2021 tour operating period the Group was able to generate £27m of revenue compared to a full year revenue of £25.6m in 2019 (the last year of trading prior to the impact of the pandemic). This increased revenue showed the strength of the brands owned in 2019 (Just Go! Holidays, Omega Breaks and Albion Journeys) plus the impact of the 2020 acquisition of the rights to the market leading coach holiday brand National Holidays to our tour operating portfolio.

The Group has prepared financial forecasts for a period beyond 12 months from the date of approval of the financial statements. Year-to-date results combined with expected performance through 2022 show significant revenue growth across the group even though there was an impact on customer bookings created by the Omicron variant of Covid-19 during December 2021 and January to February 2022.

The 2023 Group revenue is forecast to grow further, showcasing that the addition of the National Holidays brand to our portfolio, plus the underlying strength of the brands Just Go! Holidays, Omega Breaks and Albion Journeys, has provided a very large opportunity to step change the business performance and profitability. This will enable the Group to cement our position as the tour operator of preference in the domestic and short-haul group holidays market.

At the time of approving the financial statements, both current and forecast revenue streams and cash levels are strong within the business. The directors have assessed the group’s ability to continue to adopt the going concern basis of accounting and have determined that there are no material uncertainties that would make this inappropriate.

Having considered budgets, cash flow forecasts, latest management information available and, on the basis of the continuing support noted above, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover includes revenue earned from the sales of package holidays including transport, accommodation and insurance and is recognised upon commencement of the relevant tour and flight departure date. Monies received by the balance sheet date relating to holidays commencing and flights departing after the period end are included within current liabilities as Payments on Account.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

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:

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.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks comprise of tickets held for future tour events.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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 finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

The tax expense represents the sum of the tax currently payable and deferred 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.

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.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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 leases asset are consumed.

Government grants are recognised at the fair value of the asset received 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.

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.

Payments received on account

Payments received on account in creditors represents deposits and full payments received from customers prior to the commencement date of the tour.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

There are no estimates or assumptions that are deemed to have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year.

The turnover and profit before taxation are attributable to the one principal activity of the company.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

Taxable losses have been incurred and are available for use against future taxable profits. A deferred tax asset has not been recognised as the company does not anticipate taxable profits to arise within the immediate future. The estimated value of this aspect of the deferred tax asset, measured at a standard rate of 25%, is £1,417,000 (2020: £742,000 at a rate of 19%).

The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

Factors that may affect future tax charges

A rate of 25 % (2020: 19 %) was used for purposes of considering the effects of deferred taxation in the current period, as the proposed change to increase the main rate of Corporation Tax to 25 % from 1 April 2023 had been enacted at the Balance Sheet date.

Fixed asset investments are pledged as a security under a fixed charge to the bank.

Details of the company's subsidiaries at 31 December 2021 are as follows:

Registered office addresses (all UK unless otherwise indicated):

Amounts owed by group undertakings are unsecured, interest free and have no fixed date of repayment and are repayable on demand.

Amounts owed to group undertakings are unsecured, interest free and have no fixed date of repayment and are repayable on demand.

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.

Called-up share capital represents the nominal value of shares that have been issued.

The rights attaching to the respective classes of shares is as follows:

The profit available for distribution shall be applied in paying to the holders of Ordinary Shares such dividend as the director shall in their absolute discretion determine from time to time provided always that:

- If in any accounting period the defined profit of the period is £420,000 or less any such dividend shall be paid to the holders of the A Shares in proportion to their respective holdings and the holders of the B Shares shall not participate in such dividend.

- If in any accounting period the defined profit of the period is greater than £420,000 then at the same time a cash dividend is paid to the holders of the A Shares, a cash dividend of one quarter of that aggregate dividend shall be paid in aggregate as a cash dividend to the holders of the B Shares.

- In the event that an accounting period of the company is shorter or longer than the period of one year, in applying the above conditions the figure of £420,000 shall be reduced or increased in the proportion which the length of the accounting period bears to the period of one year.

Each holder of an Ordinary Share shall have one vote for each Ordinary share of which he is the holder.

There are no restrictions on the repayment of capital.

There were no contingent liabilities as at 31st December 2021 (2020: £Nil).

All securities and investments belonging to Just Go Holidays Limited are given as security to the bank facility held within JGH Group Limited, a fellow group company.

The company has given a bond to the value of £3,400,000 (2020: £2,030,000) to the Bonded Coach Holiday Group which ultimately protects the deposits made by customers for non -ATOL licensable travel. The bond is guaranteed by insurance policies provided by Travel & General Insurance Services Limited and a bank guarantee secured by a cash deposit provided by a fellow group company. At the balance sheet date the bank guarantee was limited to £522,250 (2020: £Nil).

During the year, the company, alongside other group companies, also gave a bond to the value of £304,000 (2020: £300,000) to the Civil Aviation Authority for a Standard ATOL bond which ultimately protected the deposits made by customers in relation to flight inclusive holidays. The bond was guaranteed by insurance policies provided by Travel & General Insurance Services Limited.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

As at 31 December 2021, there were capital commitments of £Nil (2020: £Nil).

The smallest group of which Just Go Holidays Limited is a member and for which group accounts are prepared is headed by JG Travel Group Limited, a company registered in England and Wales, with its registered office of 1st Floor, 111 High Street, Cheltenham, Gloucestershire, GL50 1DW.

The largest group of which Just Go Holidays Limited is a member and for which group accounts are prepared is headed by JGH Topco Limited, a company registered in England and Wales, with its registered office of 1st Floor, 111 High Street, Cheltenham, Gloucestershire, GL50 1DW.

The immediate parent company is JG Travel Group Limited, a company incorporated and registered in England and Wales.

The ultimate parent company is JGH Topco Limited, a company incorporated and registered in England and Wales.