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Registered number: 01545327
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LTM Leeds Travel Limited
Financial statements
Information for filing with the registrar
30 September 2021
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LTM Leeds Travel Limited previously known as Ventur Travel Limited
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Contents
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Notes to the financial statements
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LTM Leeds Travel Limited previously known as Ventur Travel Limited
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Company Information
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Chartered Accountants and Statutory Auditors
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1
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LTM Leeds Travel Limited previously known as Ventur Travel Limited
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Balance sheet
As at 30 September 2021
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Debtors: amounts falling due after more than one year
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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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Provisions for liabilities
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Capital redemption reserve
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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 profit and loss account 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
2
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LTM Leeds Travel Limited previously known as Ventur Travel Limited
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Balance sheet (continued)
As at 30 September 2021
30 September 2022.
Company registered number: 01545327
The notes on pages 4 to 12 form part of these financial statements.
3
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LTM Leeds Travel Limited previously known as Ventur Travel Limited
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Notes to the financial statements
For the year ended 30 September 2021
LTM Leeds 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
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Basis of preparation of financial statements
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These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The functional and presentational currency of the company is considered to be pounds sterling.
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Basis other than going concern
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The impact of the COVID-19 pandemic on both the sector and this business have been devastating. Management have taken all necessary measures to streamline the business in order to ensure its longevity but despite these measures in the best interests of the company's customers, employees and shareholders the decision was taken during the course of 2022 to sell the trade and assets to another company within the sector. This was completed in July 2022 at which point the company ceased trading. As a consequence, the financial statements have been prepared using a basis other than going concern.
As noted in Note 13, as the decision to sell the trade and assets was made after the balance sheet date no provision has been made in respect of contracts which have subsequently become onerous or for the future costs of terminating the business.
Management have prepared cash-flow forecasts to demonstrate that through a combination of release of working capital and proceeds from sale that the company can continue to meet the remaining running costs of the business and settle all known liabilities as they fall due.
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 companies within the group.
4
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LTM Leeds Travel Limited previously known as Ventur Travel Limited
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Notes to the financial statements
For the year ended 30 September 2021
2.Accounting policies (continued)
Turnover representing travel agent fees are recognised when they are earned excluding value added tax. Acting as an agent between the service provider and the end customer, revenue is presented on a net commission basis and not the gross value of the holiday or travel arrangement.
Income is derived principally from the application of agreed transaction fees to each service type requested by a client. Once the service has been completed (finalisation of the booking), an invoice is produced to reflect the supplier content (e.g. airfare) plus the service fee.
Where supplier content is invoiced directly to the customer, an invoice is produced on the booking date to reflect the service fee.
Revenues received from the sale of a third party product (i.e. Leisure sales) are recognised when the
amount has been earned, which is typically on the receipt of the final payment.
Revenues received from the sale of hotel travel are recognised when the amount has been earned, which is typically when the customer departs the hotel.
Goodwill, being the amount paid in connection with the acquisition of the trade and intellectual property of a business in 2021, is being amortised evenly over its estimated life of 4 years.
Cryptocurrencies are recorded as being intangible asset since they represent an identifiable non-monetary asset without physical substance. Cryptocurrencies are measured at cost at initial recognition and subsequently held at cost less impairment.
Tangible fixed assets are stated at purchase cost together with any incidental expenses of acquisition, net of depreciation and any provision for impairment.
Depreciation is provided on all tangible assets at rates calculated to write off the cost less estimated
residual value of each asset over its expected useful life as follows:
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20%-25% straight line basis
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Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already at the age and in the condition expected at the end of its useful life.
5
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LTM Leeds Travel Limited previously known as Ventur Travel Limited
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Notes to the financial statements
For the year ended 30 September 2021
2.Accounting policies (continued)
Current tax, including UK corporation tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Compensation for the surrender of tax losses to other group companies is credited once approved by
group management.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at
the balance sheet date where transactions or events that result in an obligation to pay more tax in the
future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply to the reversal of the timing difference.
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.
Incentives received to enter into operating leases are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease.
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.
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised.
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.
6
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LTM Leeds Travel Limited previously known as Ventur Travel Limited
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Notes to the financial statements
For the year ended 30 September 2021
2.Accounting policies (continued)
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.
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.
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit and loss, unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
The following assets and liabilities are classified as basic financial instruments - trade debtors, other debtors, cash and bank balances, trade creditors, amounts owed to or from group undertakings and accruals and are all measured at the amortised cost equivalent to the undiscounted amount of cash or other consideration expected to be paid or received.
Assets are assessed for indicators of impairment at each balance sheet date, if there is objective evidence of impairment, an impairment loss is recognised in the profit and loss as described below.
Non financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of the asset is the higher of its fair value less costs to sell and its value in use.
Financial assets
For financial assets carried at cost less impairment, the impairment loss is the difference between the
asset's carrying amount and the best estimate of the amount that would be received for the asset if it were sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on a individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher that the carrying value had not impairment been recognised.
7
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LTM Leeds Travel Limited previously known as Ventur Travel Limited
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Notes to the financial statements
For the year ended 30 September 2021
2.Accounting policies (continued)
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Critical accounting judgements and sources of estimation uncertainty
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In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about carrying values 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The critical judgements that the directors have made in applying the company's accounting policies and the key sources of estimation uncertainty that have had the most significant effect on the amounts recognised in the financial statements are described below:
Revenue recognition
The directors have assessed that the company acts as agent in performing the travel management services for its customers, and as a consequence recognises the fees it receives for the performance of these services net of the cost of travel booked. The directors have reached this conclusion having given consideration to the significant risk and rewards the company is exposed to in rendering these services.
Earn-out consideration
The directors have produced gross profit forecasts for the relevant period in order to determine their best estimate of the likely earn-out consideration payable in respect of the trade acquired during the year. An appropriate discount factor has been applied in order to take in to consideration the time value of money.
Impairment of intangible and tangible fixed assets
The directors have reviewed the overall position of the business, and at a financial level, produced discounted cash-flow forecasts in order to determine the estimated recoverable value of these assets.
Impairment of trade debtors and amounts due from group companies
The directors have reviewed cash collections and applied a hindsight perspective in assessing the likely recovery all all debts due to the company.
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LTM Leeds Travel Limited previously known as Ventur Travel Limited
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Notes to the financial statements
For the year ended 30 September 2021
9
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LTM Leeds Travel Limited previously known as Ventur Travel Limited
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Notes to the financial statements
For the year ended 30 September 2021
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Due after more than one year
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Amounts owed by group undertakings
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10
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LTM Leeds Travel Limited previously known as Ventur Travel Limited
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Notes to the financial statements
For the year ended 30 September 2021
5.Debtors (continued)
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Creditors: amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Creditors: amounts falling due after more than one year
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At 30 September 2021 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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The amounts disclosed represent the company's contractual obligations at the balance sheet date and do not reflect any changes arising from the subsequent sale of the trade and assets as referred to in Note 13.
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Allotted, called up and fully paid
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11
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LTM Leeds Travel Limited previously known as Ventur Travel Limited
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Notes to the financial statements
For the year ended 30 September 2021
9.Share capital (continued)
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2,100,000 (2020 -100,000) Ordinary shares of £1.00 each
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2,000,000 Ordinary shares of £1 each were allotted and fully paid for cash at par during the year.
The auditors' report on the financial statements for the year ended 30 September 2021 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
We draw your attention to Note 2 to the financial statements "Basis other than going concern", which explains the decision taken by the directors to cease trading and as a consequence, they do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in Note 2. Our opinion is not modified in respect of this matter.
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The audit report was signed on 30 September 2022 by Andrew Thomas BA FCA (senior statutory auditor) on behalf of Kirck Newssholme.
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Ultimate controlling company
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The company is a wholly owned subsidiary of LTM Leeds Travel Group Limited, a company incorporated in England and Wales. The largest and smallest group producing consolidated financial statements in which the company is included is Drachs Investments No.3 Limited, a company incorporated in Jersey.
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Post balance sheet events
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On 29 July 2022 the trade and certain of the company's assets were sold to a third party, at which point the company ceased trading. As the consideration receivable is linked to future gross profits it is not possible to reliably estimate the sums to be received over each period to 2025.
As the decision to sell the trade and assets was made after the balance sheet date no provision has been made in respect of contracts which have subsequently become onerous or for the future costs of terminating the business. Currently it is not possible to quantify all such costs.
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Ultimate controlling party
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The ultimate parent company Drachs Investments No.3 Limited is owned by the Ingeborg Trust. The trust is a discretionary trust, administered by JTC (Jersey) Limited, to which the beneficiaries have no express entitlement and as such the directors are of the opinion that there is no controlling party.
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The average monthly number of employees, including directors, during the year was 42 (2020 -78).
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