Unique Caribbean Holidays Limited - Limited company accounts 20.1

REGISTERED NUMBER: 04122639 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 July 2021

for

Unique Caribbean Holidays Limited

Page

Company Information

1

Strategic Report

2

to

4

Report of the Directors

5

to

6

Report of the Independent Auditors

7

to

10

Statement of Profit or Loss and Other Comprehensive
Income

11

Statement of Financial Position

12

to

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Financial Statements

16

to

35

DIRECTORS:

K R Thompson

S R Foster

D Stefano

J A Clarke

REGISTERED OFFICE:

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA

REGISTERED NUMBER:

04122639 (England and Wales)

SENIOR STATUTORY AUDITOR:

M S Caldicott ACA FCCA CTA

AUDITORS:

White Hart Associates (London) Limited

Chartered Accountants and Statutory Auditors

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA

SOLICITORS:

Fox Williams LLP

10 Finsbury Square

London

EC2A 1AF

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

The company is required by the Companies Act to set out in this report, a fair review of the business of the company during the financial year ended 31 July 2021, and its position at the end of the year along with a description of the principal risks and uncertainties facing the company. This review is prepared solely to provide additional information to shareholders to assess the company's strategies and the potential for those strategies to succeed, and the business review should not be relied upon by any other party or for any other purpose.

REVIEW OF BUSINESS

The directors are satisfied with the company's performance during the pandemic. The prioritisation of customer service through rebooking to future dates where travel was not possible and refunding in cash where cancellation was necessary has enabled the company to retain bookings and generated customer goodwill. The company has seen strong booking profiles where restrictions have been lifted and customer confidence is restored. The directors expect this pattern to continue through 2022.

The key performance indicators used by the directors to monitor the progress of the company are set out

below:-

2021

2020

£

Key performance indicators

Turnover

7,591,714

51,626,564

Gross profit

556,203

1,313,458

Gross profit as a percentage of turnover

7.33%

2.54%

Loss on ordinary activities before taxation

(2,154,150

)

(2,093,119

)

Loss on ordinary activities as a percentage of turnover

(28.38%

)

(4.05%

)

Monthly management accounts including full year forecasts are reviewed against budgets and prior years to monitor the business performance and to highlight required actions as appropriate.

PRINCIPAL RISKS AND UNCERTAINTIES

The following risk factors may affect the company's operating results and its financial position. The risk factors described below are those which the directors believe are potentially significant but should not be regarded as a complete and comprehensive statement of all potential risk and uncertainties facing the company. The directors do not feel that the risks in 2022 will be much different to those that were prevalent in 2021, with the obvious exception being the COVID-19 pandemic and the hopes that restrictions on international travel will be further relaxed. At the date of this report, it is impossible to assess the full impact of this, but the company is monitoring the situation and will take all necessary actions to try and protect the company's immediate trading performance and long-term position.

Regulatory risk

The company is exposed to various regulators, including the Civil Aviation Authority ("CAA"), which issues an Air Travel Organisers Licence ("ATOL") and is required in order for the company to operate. This licence is renewed in March each year and is subject to assessments of fitness and financial criteria, the framework of which is available on the CAA's website (www.caa.co.uk). The company is also a member of the Association of British Travel Agents ("ABTA") and as such is obliged to maintain a high standard of service as governed by ABTA's code of conduct.

Credit risk

Due to the nature of the company's business whereby individual customers are required to pay for their holiday in full before they are allowed to travel, credit risk is considered to be low. In the case of sales through travel agents and wholesalers whereby payment may be received after the travel date, ongoing business relationships mean that chasing debts is significantly easier and insurance and controls have been put in place to ensure that debts are chased when they are due.

Liquidity risk

The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows. However, if due to unusual circumstances this was insufficient, the company could draw on support from within the wider group.

Foreign exchange rate exposure

The functional currency of the company is sterling, however the company undertakes transactions with suppliers principally in US Dollars. Consequently the company is at risk to the extent that the Pound Sterling may weaken against the United States Dollar to which the company needs to settle its land-based costs post-travel. This risk is mitigated by other group members having prudent forward exchange contracts in place to hedge against exchange rate fluctuations.

Technology risk

The company is heavily reliant on the uninterrupted operation of its IT systems and website. These systems are vulnerable to power loss, fire, computer viruses and other events. Loss of these systems would impair the ability of the company to carry on its business effectively. The company has made arrangements to mitigate this risk.

Interest rate risk

Interest rate risk is considered to be less of an issue for the company as it is not reliant upon receiving interest in order to continue trading and also because it does not have any loans susceptible to changes in interest rates. The company finances its operations through retained profits.

Economic conditions

The demand for holidays is affected by local economic conditions. The uncertainty created by the COVID-19 pandemic along with Brexit, and the ensuing volatility in exchange rates and consumer confidence creates a fragile trading environment. Despite the negative impact upon the travel industry, the directors believes that the company is able to quickly adapt to changes in the local market demand, however a further prolonged period of booking slowdown could adversely affect future financial results and liquidity.

CORONAVIRUS IMPACT

Since March 2020 the travel industry has been severely impacted by the coronavirus pandemic.

From July 2020 onwards there have been periods where UK customers could travel and periods of travel bans or Foreign, Commonwealth & Development Office (FDCO) advice against travelling to particular destinations. The company is also exposed to any restrictions placed on UK residents arriving into the Caribbean islands by local governments. The company has endeavoured to fulfil as many holidays as possible and in circumstances where it was not possible have offered alternative resorts or a full refund. All refunds have been paid in cash with no credit notes issued.

The directors are encouraged by the number of bookings that have been retained and the forward order book for 2022 departures.

The directors are actively monitoring the risks associated with the impact of the virus and have taken advantage of available government support including the Coronavirus Job Retention Scheme (CJRS) and the business rates relief for retail businesses.

ON BEHALF OF THE BOARD:

K R Thompson - Director

12 January 2022

The directors present their report with the financial statements of the company for the year ended 31 July 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was the provision of Sandals, Beaches and Grand Pineapple Resort holidays to UK based consumers as either land-only or flight inclusive packages.

DIVIDENDS

No dividends will be distributed for the year ended 31 July 2021.

FUTURE DEVELOPMENTS

There have been no significant events affecting the Company since the year end, except for the continued disruption caused by the COVID-19 pandemic, which has had a significant impact upon the industry in which the company operates, as described in the notes to the financial statements.

During 2022, the company will continue to operate as outlined in the principal activity note above.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 August 2020 to the date of this report.

K R Thompson

S R Foster

D Stefano

Other changes in directors holding office are as follows:

J A Clarke - appointed 30 April 2021

T L Gonzalez - resigned 30 April 2021

GOING CONCERN

The directors have considered the company's current and future prospects, taking into account the effects of the coronavirus pandemic on cash flows and liquidity. As set out in the notes to the financial statements, the results of our base case and downside scenario support that there is sufficient support available within the wider group to enable the company to continue to pay its liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements. As such, the directors continue to adopt the going concern basis of preparation for these financial statements. However, despite the relaxation of international travel restrictions, there is still the potential for further disruption to travel should the pandemic see a resurgence and this could have a potential impact on consumer confidence to buy our holidays and to travel. As a result, this gives rise to some uncertainties over going concern as detailed in the notes to the financial statements.

QUALIFYING INDEMNITY PROVISION

During the period and up to the date of this report, the company maintained liability insurance and third-party indemnification provisions for its directors, under which the company has agreed to indemnify the directors to the extent permitted by law in respect of all liabilities to third parties arising out of, or in connection with, the execution of their powers, duties and responsibilities as directors of the company.

DISCLOSURE IN THE STRATEGIC REPORT

The directors have provided commentary for the Review of Business and Analysis of Performance as well as the Principal Risks and Uncertainties in the Strategic Report in line with The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards as adopted by the European Union. 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 directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, White Hart Associates (London) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

K R Thompson - Director

12 January 2022

Opinion

We have audited the financial statements of Unique Caribbean Holidays Limited (the 'company') for the year ended 31 July 2021 which comprise the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 July 2021 and of its loss for the year then ended;

-	have been properly prepared in accordance with IFRSs as adopted by the European Union; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, 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 directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We exercise professional judgment and maintain professional scepticism throughout the audit;

- 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. 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 deliberate override of internal control;

- We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control;

- We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made;

- We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;

- We review the scope of the company's compliance with its regulator, the Civil Aviation Authority ("CAA"), its membership of The Association of British Travel Agents ("ABTA") and its accreditation with the International Air Transport Association ("IATA") and sample test relevant documentation to assess this and the effectiveness of its control environment;

- We request and review the minutes of management meetings, and assess any matters identified not already provided for or disclosed that may materially impact the financial statements;

- We review the company's relationships with related parties and other group companies, identifying and disclosing transactions during the year and balances at year-end with such parties;

- We conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the entity to cease to continue as a going concern.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

The impact of uncertainties due to the COVID-19 pandemic on our audit

Uncertainties related to the effects of the COVID-19 pandemic are relevant to understanding our audit of the financial statements. All audits assess and challenge the reasonableness of estimates made by the directors, such as recoverability of investments, intangible assets and related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the company's future prospects and performance.

The COVID-19 pandemic has had an unprecedented impact upon the worldwide economy and in particular upon the travel industry, with many consumers cancelling or delaying travel plans as a result. At the date of this report, the full range of possible effects upon travel companies cannot be estimated or assessed due to the current levels of uncertainty around government and consumer responses to what might happen.

The accelerated vaccine rollout has led to an improvement in the assessment of the uncertainty in that it should accelerate the ability for consumers to travel again safely and also enable travel routes to re-open. Whilst a positive aspect, it still does not remove the ongoing uncertainty of the measures that will be taken by various governments to contain the virus and the final economic effects.

We applied a standardised firm-wide approach in response to these uncertainties when assessing the company's future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a group or company and this is particularly the case in relation to the COVID-19 pandemic.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

M S Caldicott ACA FCCA CTA (Senior Statutory Auditor)

for and on behalf of White Hart Associates (London) Limited

Chartered Accountants and Statutory Auditors

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA

12 January 2022

CONTINUING OPERATIONS

Revenue

3

7,591,714

51,626,564

Cost of sales

(7,035,511

)

(50,313,106

)

GROSS PROFIT

556,203

1,313,458

Other operating income

4

41,738

115,152

Administrative expenses

(2,728,039

)

(3,564,988

)

OPERATING LOSS

(2,130,098

)

(2,136,378

)

Finance costs

6

(30,553

)

-

Finance income

6

6,501

43,259

LOSS BEFORE INCOME TAX

7

(2,154,150

)

(2,093,119

)

Income tax

8

19,715

19,396

LOSS FOR THE YEAR

(2,134,435

)

(2,073,723

)

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE LOSS FOR
THE YEAR

(2,134,435

)

(2,073,723

)

ASSETS

NON-CURRENT ASSETS

Owned

Intangible assets

9

36,989

84,535

Property, plant and equipment

10

699,997

857,686

Right-of-use

Property, plant and equipment

10, 17

1,043,356

-

Deferred tax

18

115,692

98,722

1,896,034

1,040,943

CURRENT ASSETS

Trade and other receivables

11

3,689,557

3,156,704

Cash and cash equivalents

12

16,714,846

6,985,230

20,404,403

10,141,934

TOTAL ASSETS

22,300,437

11,182,877

EQUITY

SHAREHOLDERS' EQUITY

Called up share capital

13

500,000

Retained earnings

14

(3,519,525

)

(1,289,911

)

TOTAL EQUITY

(3,019,525

)

(789,911

)

LIABILITIES

NON-CURRENT LIABILITIES

Trade and other payables

15

1,687,673

993,230

Financial liabilities - leasing

Leasing liabilities

16

925,371

-

2,613,044

993,230

CURRENT LIABILITIES

Trade and other payables

15

22,452,796

11,391,888

Financial liabilities - leasing

Leasing liabilities

16

254,122

-

Tax payable

-

(412,330

)

22,706,918

10,979,558

TOTAL LIABILITIES

25,319,962

11,972,788

TOTAL EQUITY AND LIABILITIES

22,300,437

11,182,877

The financial statements were approved by the Board of Directors and authorised for issue on 12 January 2022 and were signed on its behalf by:

K R Thompson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

Balance at 1 August 2019

500,000

783,812

1,283,812

Changes in equity

Total comprehensive loss

-

(2,073,723

)

(2,073,723

)

Balance at 31 July 2020

500,000

(1,289,911

)

(789,911

)

Changes in equity

Total comprehensive loss

-

(2,134,435

)

(2,134,435

)

Impact of implementing IFRS 16
under the modified retrospective
method

-

(95,179

)

(95,179

)

Balance at 31 July 2021

500,000

(3,519,525

)

(3,019,525

)

Cash flows from operating activities

Cash generated from operations

23

9,025,972

(9,586,001

)

Lease interest paid

(30,553

)

-

Tax paid

415,075

-

Net cash from operating activities

9,410,494

(9,586,001

)

Cash flows from investing activities

Purchase of intangible fixed assets

-

(23,923

)

Purchase of tangible fixed assets

(3,383

)

(11,597

)

Interest received

6,501

43,259

Net cash from investing activities

3,118

7,739

Cash flows from financing activities

Receipts/(repayments) of group loans

316,004

(44,002

)

Net cash from financing activities

316,004

(44,002

)

Increase/(decrease) in cash and cash equivalents

9,729,616

(9,622,264

)

Cash and cash equivalents at beginning of
year

24

6,985,230

16,607,494

Cash and cash equivalents at end of year

24

16,714,846

6,985,230

1.	STATUTORY INFORMATION

Unique Caribbean Holidays Limited is a limited company incorporated in the United Kingdom. The principal activity of the company is that of a Tour Operator. The company's ATOL Number is 11174, ABTA Number is Y6413 and IATA Numeric Code is 07886493.

The company's registered office is:

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA

2.	ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with International Financial Reporting Standards and IFRIC interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

Going concern

In assessing the company's going concern position for the year ended 31 July 2021, the directors have considered the company's cash flows, liquidity and business activities. The company is a trading subsidiary of the group headed up by the ultimate parent company and has net current liabilities as at 31 July 2021. As a result, the company is reliant on the continued financial support of the group and it has received written confirmation from Unique Vacations Inc, the ultimate controlling party, of its intention to support the company for a period of at least 12 months after these financial statements are signed.

In making this assessment, the directors have considered the potential impact of the coronavirus pandemic on the cash flows and liquidity of the company over the period to 28 February 2023.

The assessment reflects the current measures put in place by the company to preserve cash whilst international travel restrictions are eased by the Foreign, Commonwealth & Development Office (FCDO).

As a consequence of the economic impact of COVID-19 and possible impact on consumer sentiment for travel we have forecasted reductions in bookings and departed revenue for an extended period whilst the industry returns to historical levels.

The directors have considered the impact of an additional downside scenario with a greater length of international travel disruption extended to 31 December 2021. This scenario has a more severe impact on the company's liquidity and cash flow.

Certain mitigations have been assumed in this scenario but there may be further mitigations the company could take including additional reductions in discretionary expenditure at certain times to improve liquidity, further use of the government job retention scheme (whilst it is available) or raising funds from within the group.

The directors acknowledge there are material uncertainties that may cast significant doubt over the company's ability to continue as a going concern in respect of:

- the extent and potential reapplication of travel restrictions in the UK and overseas;

- potential reductions in revenues that may arise from a reduction in consumer demand for the holidays that the company sells once travel restrictions are lifted.

Having assessed the potential liquidity shortfall in the event of a longer period of impact from the COVID-19 pandemic and the mitigating actions the company can control and those which they could expect to be able to take, the directors' have a reasonable expectation that the company has adequate resources to continue in operational existence for the next 12 months. For these reasons and the written confirmation of financial support received from Unique Vacations Inc, they continue to adopt a going concern basis for the preparation of the financial statements. Accordingly these financial statements do not include any adjustments to the carrying amount or classification of assets and liabilities that would result if the company were unable to continue as a going concern.

Critical accounting judgements and key sources of estimation uncertainty

Preparation of the financial statements requires management to make certain judgements and estimates. The key items in the financial statements where these judgements and estimates have been made include:

Critical management judgement in applying accounting policies

There are no management judgements that are considered to be critical in applying accounting policies.

Key sources of estimation uncertainty

Fixed assets

Depreciation and amortisation of tangible and intangible assets requires consideration of the useful economic life and residual value of fixed assets. Management estimate the future benefit of fixed assets and perform an annual review for signs of any impairment in these assets.

New accounting standards and interpretations

During the year, the company has adopted International Financial Reporting Standards ('IFRS') in order to more closely align with group accounting policies. The adoption of IFRS has had minimal impact upon the financial statements, except for the implementation of IFRS 16 (Capital Lease Accounting), the effects of which are outlined below.

IFRS 16 'Leases' ("IFRS 16") was issued in January 2016 and introduces a single lessee accounting model. A lessee is required to recognise a right-of-use ("ROU") asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. Existing finance leases will be reclassified to an ROU asset equal to the carrying amount of the finance lease asset and lease liability immediately before that initial application date. Lessor accounting is largely unchanged. IFRS 16 contains both quantitative and qualitative disclosure requirements to provide a basis for users of financial statements to assess the effect that leases have on the financial statements. Upon the 1 August 2020 date of initial application, the company recorded its ROU assets and lease liabilities using the modified retrospective method. Operating lease costs, included in administrative expenses, were replaced by a depreciation expense and an interest expense. The ROU asset values were determined as if the standard had been applied since the lease commencement dates, but discounted using the company's incremental borrowing rate at the date of initial application.

The adoption of IFRS 16 under the modified retrospective method led to a net reduction in opening reserves as at 1 August 2020 of £95,179. The company recorded ROU assets and an impact on liabilities at 1 August 2020 of £1,293,761 and £1,388,940 respectively, with residual amounts recorded in retained earnings. The comparative information for the prior periods presented in the financial statements has not been restated and continues to be reported under IAS 17 'Leases' ("IAS 17") and IFRIC 4 'Determining Whether an Arrangement Contains a Lease' ("IFRIC 4").

Upon adoption of IFRS 16, operating lease costs, included in administrative expenses in the statements of profit and loss and other comprehensive income, have been replaced by a depreciation expense for the ROU assets and an interest expense related to the lease liabilities. There is no net impact to the total net cash flows as a result of adoption of IFRS 16. However, there are higher cash flows from operating activities offset by lower cash flows from financing activities.

The company elected to use the transition practical expedient which allowed the standard to be applied only to contracts that were previously identified as leases under IAS 17 and IFRIC 4 at the date of initial application. The company elected to use the recognition exemptions for lease contracts that have a lease term of 12 months or less ("short-term leases") and lease contracts for which the underlying asset is of low value ("low-value asset leases" under £5,000). The company also applied the practical expedient to exclude lease contracts with lease terms that end within 12 months of the date of initial application. Additionally, the company used hindsight in determining the lease term where the contract contained options to extend or terminate the lease.

Nature of the Effect

The company has lease contracts for office buildings and office equipment. Before the adoption of IFRS 16, the company classified each of its leases (to which the company was a lessee) at the inception date as either a finance lease or an operating lease. A lease was classified as a finance lease if it transferred substantially all of the risks and rewards incidental to ownership of the leased asset to the company; otherwise it was classified as an operating lease. Finance leases were capitalised at the commencement of the lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments were apportioned between interest (recognised as interest expense) and a reduction of the lease liability. For operating leases, the leased property was not capitalised and the lease payments were recognised as selling and administration expenses in the statements of total comprehensive income as incurred or on a straight-line basis over the lease term, respectively. Any prepaid leases and accrued lease liabilities were recognised under deferred rent and non-current portion of deferred rent, respectively.

Leases Previously Classified as Operating Leases as a Lessee

The company recognised ROU assets and lease liabilities for leases previously classified as operating leases. Apart from the use of the incremental borrowing rates at the date of initial application, the ROU assets were recognised based on the carrying amount of the leases as if the standard had been applied since the lease commencement dates. Lease liabilities were recognised based on the present value of the remaining lease payments, discounted using the incremental borrowing rates at the date of initial application. The lease liabilities were discounted at the incremental borrowing rates as of 1 August 2020. The weighted average discount rate was 2.40%.

Accounting standards and interpretations issued but not effective

Beyond the adoption of IFRS, the company has not adopted any new accounting standards during the year.

Relevant standards and interpretations that are issued up to the date of issuance of the financial statements, but not yet adopted are disclosed below. The company's intention is to adopt the relevant new and amended standards and interpretations when they become effective, subject to EU approval before the financial statements are issued.

IFRS 17 'Insurance Contracts' ("IFRS 17") was issued in May 2017 and introduces a single accounting model for the recognition of profits from insurance contracts for companies providing insurance services. IFRS 17 has been deferred and will now be effective for periods beginning on or after 1 January 2023, however because the company does not act as an insurer, it does not expect the standard to have a significant impact on its financial statements.

Revenue recognition

Revenue represents the amounts receivable by the company for sales of holiday products and related commissions. Revenue is measured based on the consideration specified in the company's contracts with customers, excluding discounts, rebates and other sales taxes. Revenue is recognised as the performance obligations are satisfied.

Nature of goods and services

Holiday revenue, net of discounts, includes revenue earned primarily from accommodation packages and any other supporting activities, including air and other transportation and customer cancellations. The company's performance obligations under these contracts are to provide a package vacation and other supporting activities in exchange for the invoiced transaction price. The company engages third parties to fulfill obligations to customers for air and other transportation, but retains the ultimate risks of fulfilment and generally has discretion to select the acceptable carrier and absorbs the risk of cost fluctuations. The company satisfies the performance obligations and recognises revenue pro-rata over the vacation period, except for cancellation revenues, which are recognised upon cancellation.

Payment Terms and Deferred Revenue

Payment terms and cancellation policies are broadly standard. A deposit for a future vacation is required at or soon after the time of booking to secure the booking. The company collects a majority of its deposits for bookings and tours up to, and in some cases more than, a year in advance of the departure date with the remaining balances due prior to departure. Deposits include the total amounts paid by customers prior to departure, for which the company is obligated to perform services. These deposits represent contract liabilities, which are recorded as deferred revenue and are recognised as revenue generally pro rata over the vacation period. Deferred revenue is a current liability as it relates to the company's normal operating cycle.

Costs of sales

Expenses from the company's holiday operations are recognised at the time the company provides the services. The company is usually required to make deposit payments to suppliers for the cost of accommodation, flights and other related costs at or soon after the time of booking to secure these, with the remaining balances due prior to departure. These deposit payments represent contract assets, which are recorded as prepayments and are recognised as cost of sales generally pro-rata over the vacation period. Prepayments are a current asset as they relate to the company's normal operating cycle.

Administrative expenses

Administration costs include marketing costs, employee costs, office expenses, professional services and other administrative costs. Marketing costs include media advertising, brochure production, direct mail costs, promotional expenses, search engine marketing and other costs that support the ongoing development of the company's brand and customer database. Marketing costs are expensed as incurred. Television advertising and exhibition costs are deferred until they take place. Office expenses include rent expense, utility costs, office supplies and telecommunication costs. Professional service fees include costs for accounting services, legal services and information technology consulting services. Other administrative costs include corporate insurance, postage and other sundry expenses. Employee costs, office expenses, professional service fees and other administrative expenses are expensed as incurred. Rent is recognised as expense on a straight-line basis over the lease term. Total administrative expenses for the years ended 31 July 2021 and 2020 were £2.7 million, and £3.6 million, respectively.

Interest income

Interest income is recognised as interest accrues using the effective interest rate method.

Intangible assets

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.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Computer software

- 25% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Property, plant and equipment

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 the manner intended by management.

The company adds to the carrying amount of an item of tangible fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Statement of comprehensive income during the period in which they are incurred.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Short leasehold property

- shorter of remaining lease period and 10 years

Right of use assets

- over the lease term

Computer equipment

- 25% straight line

Fixtures & Fittings

- 25% straight line

Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a straight-line 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.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Financial instruments

Financial assets and liabilities are recognised on the statement of financial position when the company becomes a party to the contractual provisions of the instrument.

Financial assets include cash and cash equivalents, trade receivables, other receivables, loans and derivative financial instruments. Those relevant to the company are trade and other receivables, which are recorded at their nominal amount less an allowance for any doubtful debts, and cash and cash equivalents which are also recorded at their nominal amount. These financial assets are classified as loans and receivables and so are carried at amortised cost. Gains and losses are recognised in the statement of profit or loss when the assets are derecognised or impaired, as well as through the amortisation process.

Financial liabilities include trade and other payables, accruals, finance debt and derivative instruments. Those relevant to the company are trade and other payables and accruals which are stated at their nominal value. These financial liabilities are initially recognised at fair value and are then subsequently measured at amortised cost. Gains and losses arising on the repurchase, settlement or cancellation of liabilities are recognised in the statement of profit or loss.

Equity instruments issued by the company are recorded at the proceeds received net of direct issue costs.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

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 rate of exchanges at the statement of financial position date. 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 the Statement of Profit and Loss and Other Comprehensive Income except when deferred in other comprehensive income.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Profit and Loss and Other Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.

Leases

Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract.

Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term.

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 the Statement of Profit and Loss and Other Comprehensive Income 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.

Use of estimates

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised. The effect of the use of estimates in these financial statements is not material.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments maturing within 90 days from the date of acquisition that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

Receivables

Short term debtors are measured at transaction price, less any impairment. Impairment is assessed at the end of each reporting period for objective evidence of impairment. If evidence of impairment is found an impairment loss is recognised in the statement of comprehensive income.

Payables

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.

Finance costs

Finance costs are charged to the Statement of Profit and Loss and Other Comprehensive Income 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.

Interest income

Interest income is recognised in the Statement of Profit and Loss and Other Comprehensive Income using the effective interest method.

Government grants

Grants are accounted for under the accruals model as permitted by IAS 20. Grants relating to expenditure on tangible fixed assets are credited to the Income Statement at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

3.

REVENUE

Revenue from contracts with customers

The company sells holidays predominantly to the UK market, the destinations of which are all in the Caribbean.

Deferred revenue (contract liability)

Activity in the company's deferred revenue for the years ended 31 July 2021 and 2020 is as follows:

£

Payments on account at 1 July 2019

17,777,256

Increase due to cash received

43,606,952

Revenue recognised

(51,626,564

)

Payments on account at 31 July 2020

9,757,644

Increase due to cash received

18,699,468

Revenue recognised

(7,591,714

)

Payments on account at 31 July 2021

20,865,398

The company recognised just under £8 million and £52 million from contract liabilities in revenue during the

years ended 31 July 2021 and 2020, respectively, which were derived from the majority of the company's

deferred revenue balances at the beginning of each year and the cash received during the years ended 31

July 2021 and 2020. Of the £9.8 million deferred revenue balance as at 31 July 2021, the company expects 92% to be recognised in revenue over the next 12 months.

Assets recognised from the costs to obtain a contract with a customer

Prepaid costs are incremental costs of obtaining contracts with customers that the company recognises as assets, which are included within prepaid expenses in the statement of financial position. Prepaid costs are generally paid in advance of departure date.

Prepaid costs increased to £1,650,501 as of 31 July 2021 from £580,347 as of 31 July 2020. The majority of the company's prepaid costs as of 1 August 2020 were expensed and reported within costs of sales in the Statement of Profit and Loss and Other Comprehensive Income for the year ended 31 July 2021.

4.	OTHER OPERATING INCOME

2021

2020

£

Commissions received

23,902

-

Government grants

17,836

115,152

41,738

115,152

Furlough grants above relate to grants received through the Coronavirus Job Retention Scheme (CJRS), which was implemented by the UK Government to assist companies affected by the COVID-19 pandemic with employee wages. There are no unfulfilled conditions or other contingencies attaching to the grants recognised as income.

5.	EMPLOYEES AND DIRECTORS

2021

2020

£

Wages and salaries

1,266,205

1,564,718

Social security costs

128,541

157,802

Other pension costs

62,861

70,721

1,457,607

1,793,241

The average number of employees during the year was as follows:

2021

2020

Sales

22

24

Marketing

4

5

Administration

14

21

Directors

4

44

54

In the opinion of the directors there are no members of key management personnel other than the directors themselves. All directors are remunerated by another group company therefore there were no transactions with key management personnel during the period (2020: £Nil)

6.	NET FINANCE COSTS

2021

2020

£

Finance income:

Deposit account interest

6,501

43,259

Finance costs:

Lease interest payable

30,553

-

Net finance costs

24,052

(43,259

)

7.	LOSS BEFORE INCOME TAX

The loss before income tax is stated after charging:

2021

2020

£

Cost of inventories recognised as expense

7,035,511

50,313,106

Depreciation - owned assets

159,447

216,311

Depreciation - assets on finance leases

250,405

-

Loss on disposal of fixed assets

1,625

-

Computer software amortisation

47,546

71,365

Auditors' remuneration

13,632

44,865

Foreign exchange differences

9,702

50,595

8.	INCOME TAX

Analysis of tax income

2021

2020

£

Current tax:

Corporation Tax

(60,526

)

-

Corporation Tax - Prior year adjustment

(2,745

)

-

Corporation Tax - Group Relief

60,526

-

Total current tax

(2,745

)

-

Deferred tax

(16,970

)

(19,396

)

Total tax income in statement of profit or loss and other comprehensive
income

(19,715

)

(19,396

)

Factors affecting the tax expense

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2021

2020

£

Loss before income tax

(2,154,150

)

(2,093,119

)

Loss multiplied by the standard rate of corporation tax in the UK of 19%
(2020 - 19%)

(409,289

)

(397,693

)

Effects of:

Expenses not deductible for tax purposes

(17,775

)

42

Capital allowances for period in excess of depreciation

16,030

24,959

Movement in deferred taxation

(16,970

)

(19,396

)

Adjustments in respect of previous periods

(2,745

)

-

Tax losses carried forward

350,508

292,422

Losses surrendered to group companies

60,526

80,270

Tax income

(19,715

)

(19,396

)

Factors that may affect future tax charges

Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2021 (on 11 March 2021). These include increases to the main rate of tax from 19% to 25% from 1 April 2023 for profits exceeding £50,000. Deferred taxes at the Statement of Financial Position date have been measured using the rates that will be applicable in the periods to which they relate.

9.	INTANGIBLE ASSETS

Computer

software

£

COST

At 1 August 2020

325,247

Disposals

(38,625

)

At 31 July 2021

286,622

AMORTISATION

At 1 August 2020

240,712

Amortisation for year

47,546

Eliminated on disposal

(38,625

)

At 31 July 2021

249,633

NET BOOK VALUE

At 31 July 2021

36,989

At 31 July 2020

84,535

10.	PROPERTY, PLANT AND EQUIPMENT

Improvements

Right of

Fixtures,

to

use

fittings

Computer

property

assets

& equipment

equipment

Totals

£

COST

At 1 August 2020

1,498,371

-

331,252

149,245

1,978,868

Additions

3,383

1,293,761

-

1,297,144

Disposals

(4,087

)

-

(24,735

)

(21,010

)

(49,832

)

At 31 July 2021

1,497,667

1,293,761

306,517

128,235

3,226,180

DEPRECIATION

At 1 August 2020

660,950

-

328,039

132,193

1,121,182

Charge for year

150,091

250,405

1,825

7,531

409,852

Eliminated on disposal

(2,462

)

-

(24,735

)

(21,010

)

(48,207

)

At 31 July 2021

808,579

250,405

305,129

118,714

1,482,827

NET BOOK VALUE

At 31 July 2021

689,088

1,043,356

1,388

9,521

1,743,353

At 31 July 2020

837,421

-

3,213

17,052

857,686

11.	TRADE AND OTHER RECEIVABLES

2021

2020

£

Current:

Trade debtors

383,158

1,690,268

Other debtors

1,044,222

108,417

VAT

25,398

-

Prepayments and accrued income

2,236,779

1,358,019

3,689,557

3,156,704

12.	CASH AND CASH EQUIVALENTS

2021

2020

£

Cash in hand

16,714,846

6,985,230

Restricted cash

The company is subject to the following restrictions upon its cash and cash equivalents:

The company has entered into a covenant with the Civil Aviation Authority ('CAA') to maintain sufficient cash reserves so as to satisfy the CAA's liquidity ratio requirements. For these purposes, the cash to client monies ratio is to be calculated by dividing the company's total cash (total cash) by the company's liabilities attributable to client monies held (customers monies received in advance). For clarity, total cash comprises of all cash held within the ringfenced company excluding any cash held for agency bookings. Customer monies received in advance will comprise of gross client monies in respect of licensable transactions with no netting off of amounts paid to suppliers. Any amounts outstanding that are held for agency bookings are to be excluded from customer monies received in advance.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

500,000

Ordinary

£1

500,000

The ordinary shares of £1 each carry full voting rights, full dividend rights and full rights to participation in any capital distribution on winding up.

14.

RESERVES

Retained

earnings

£

At 1 August 2020

(1,289,911

)

Deficit for the year

(2,134,435

)

Impact of implementing IFRS 16
under the modified retrospective
method

(95,179

)

At 31 July 2021

(3,519,525

)

The retained earnings account represents all current and prior period retained profits and losses, less any dividends paid to the company's parent.

15.	TRADE AND OTHER PAYABLES

2021

2020

£

Current:

Trade creditors

1,356,533

90,822

Amounts owed to group undertakings

1,738,623

1,422,619

Amounts owed to joint ventures

-

(95,179

)

Other creditors

1,044

1,515

Accruals and deferred income

19,356,596

9,876,932

22,452,796

11,296,709

Non-current:

Accruals and deferred income

1,687,673

993,230

Aggregate amounts

24,140,469

12,289,939

The amounts shown as owed to group undertakings relates to an interest free loan from Unique Travel Corp. The directors of Unique Travel Corp. have confirmed their intention not to call in the debt of £1,738,623 (2020: £1,422,619) as at 31 July 2021 for a period of at least 12 months from the date of the approval of the accounts, although the loan is repayable on demand. Included in the £1,738,623 is an amount of £658,848 (2020: £658,848) which is classified as subordinated debt held with Unique Travel Corp.

The company had BSP outstanding cash sales due to be paid of £603,922 at 31 July 2021, all of which were paid within August 2021. The company did not have any unutilised overdraft or Revolving Credit Facilities at 31 July 2021.

16.

FINANCIAL LIABILITIES - LEASING

2021

2020

£

Current:

Leases (see note 17)

254,122

-

Non-current:

Leases (see note 17)

925,371

-

Terms and debt repayment schedule

1 year or

less

1-2 years

2-5 years

Totals

£

Leases

254,122

301,094

624,277

1,179,493

17.

LEASING

Right-of-use assets

Property, plant and equipment

2021

2020

£

COST

Additions

1,293,761

-

DEPRECIATION

Charge for year

250,405

-

NET BOOK VALUE

1,043,356

-

Lease liabilities

Minimum lease payments fall due as follows:

2021

2020

£

Gross obligations repayable:

Within one year

254,122

-

Between one and five years

925,371

-

1,179,493

-

Finance charges repayable:

Net obligations repayable:

Within one year

254,122

-

Between one and five years

925,371

-

1,179,493

-

Total operating expenses related to short-term leases and leases for low-value assets for the year ended 31 July 2021 were £17,587. Operating expenses related to variable lease payments for the year ended 31 July 2021 were £Nil.

Lease repayments during the year amounted to £240,000 (2020 - £317,500). The interest expense associated with leases during the year amounted to £30,553 (2020 - £Nil).

The company leases one office building and also has three significant lease agreements in respect of office

equipment. The office lease has a non-cancellable term of 10 years ending in 2025. The office equipment leases have non-cancellable terms of 4 or 5 years ending in 2021 and 2022 respectively.

18.	DEFERRED TAX

2021

2020

£

Balance at 1 August

(98,722

)

(79,326

)

Accelerated capital allowances

(16,970

)

(19,396

)

Balance at 31 July

(115,692

)

(98,722

)

The deferred tax account consists of the tax effect of timing differences in respect of:

2021

2020

£

Accelerated capital allowances

74,308

34,731

Unused tax losses

(190,000

)

(133,453

)

(115,692

)

(98,722

)

19.	PENSION COMMITMENTS

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £62,861 (2020: £70,721).

The company operates a defined contribution pension scheme for the benefit of the employees and certain directors. The assets of the scheme are administered by trustees in a fund independent from those of the company.

There were no amounts outstanding at the year end (2020 :£Nil).

20.	CONTINGENT LIABILITIES

At 31 July 2021, there were contingent liabilities outstanding in respect of counter indemnities and guarantees given by the company, in the normal course of business, to the company's bond insurance obligors in respect of International Air Transport Association ('IATA') bonds amounting to £330,000 (2020 - £Nil).

21.	RELATED PARTY DISCLOSURES

During the year, the company entered into the following transactions with related parties:

Unique Travel Corp. (a fellow group company incorporated in Panama) - the company received net working capital funding during the year of £316,004 (2020: repaid £44,002). As at 31 July 2021, the company held liabilities of £1,738,623 (2020: £1,422,619) against this funding.

Unique Travel Corp. charged the company £4,585,043 (2020: £32,839,876) in respect of holiday accommodation costs. The balance due to Unique Travel Corp. at 31 July 2021 was £728,917 (2020:

£5,393).

The company earned £23,902 (2020: £26,785) from Unique Travel Corp. in respect of agreed volume related override income.

Unique Vacations (UK) Limited (a fellow group company incorporated in the UK) charged the company £192,000 (2020: £192,000) for management recharges and marketing services. The balance due to Unique Vacations (UK) Limited at 31 July 2021 was £Nil (2020: £Nil).

22.	CONTROLLING PARTY

The company's immediate parent undertaking is Unique Vacations Inc, a company incorporated in Panama. The company is a wholly-owned member of Unique Vacations Inc whose registered office address is Calle Aquilino de la Guardia, No.8, IGRA Building, PO Box 87-1371, Panama 7, Republic of Panama.

23.	RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS

2021

2020

£

Loss before income tax

(2,154,150

)

(2,093,119

)

Depreciation charges

457,398

287,676

Loss on disposal of fixed assets

1,625

-

Finance costs

30,553

-

Finance income

(6,501

)

(43,259

)

(1,671,075

)

(1,848,702

)

(Increase)/decrease in trade and other receivables

(532,853

)

3,404,827

Increase/(decrease) in trade and other payables

11,229,900

(11,142,126

)

Cash generated from operations

9,025,972

(9,586,001

)

24.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 July 2021

31/7/21

1/8/20

£

Cash and cash equivalents

16,714,846

6,985,230

Year ended 31 July 2020

31/7/20

1/8/19

£

Cash and cash equivalents

6,985,230

16,607,494

25.	CAPITAL MANAGEMENT POLICIES AND PROCEDURES

The company's capital management objectives are to ensure the company's ability to continue as a going concern, so it can provide returns to shareholders and benefits to other stakeholders.

This is achieved by pricing products commensurably with the level of risk and ensuring sufficient bank and other facilities are in place, and collecting customer deposits in a timely manner.

26.	SUBSEQUENT EVENTS

There have been no significant events affecting the company since the year end, except for the continued disruption caused by the COVID-19 pandemic, which has had a significant impact upon the industry in which the Company operates, as described in the notes to the financial statements.

During 2022, the company will continue to operate as outlined in the principal activity note above.