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Registered number: 04671643
BLUE CUBE TRAVEL LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE 9 MONTHS ENDED 31 MAY 2022
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BLUE CUBE TRAVEL LIMITED
REGISTERED NUMBER: 04671643
STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2022
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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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BLUE CUBE TRAVEL LIMITED
REGISTERED NUMBER: 04671643
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MAY 2022
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 November 2022.
The notes on pages 3 to 13 form part of these financial statements.
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BLUE CUBE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 MAY 2022
Blue Cube Travel Limited is a private company limited by shares incorporated in England and Wales. The registered number and the address of the registered office and trading office is given in the Company informtion of these financial statements.
The nature of the Company's operations and principal activities are that of the provision of travel arrangements and agency services to corporate bodies.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The impact of the Covid-19 pandemic on the business, which started March 2020, started to ease in the summer of 2021. Despite the Omicron wave of late 2021, business levels have continued to return to a level of normalcy through to the beginning of 2022 and to the date of approval of these financial statements.
The Directors continue to monitor any change in external factors that could affect the continued recovery. The strength of the company’s resources because of improved business activity and bank funding with continued cost control has given directors confidence to withstand any further Covid related negative external events in the next twelve months from the approval date of these financial statements.
Although it is not possible to reliably estimate the length of severity of the COVID-19 outbreak and its long term impact, at the date of approving the financial statements, the directors are confident that the existing funding facilities will provide sufficient headroom to meet the forecast cash requirements during the twelve months from the date of approval of the financial statements.
The directors consider it appropriate to prepare the financial statements on a going concern basis.
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BLUE CUBE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 MAY 2022
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Turnover represents the value of net commissions, transaction fees and other income earned for the arrangement of travel services. Transactional and management fee income is recognised when it arises and it is certain that economic benefits associated with the transaction will flow.
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Operating leases: the Company as lessor
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Rental income from operating leases is credited to profit or loss on a straight line basis over the lease term.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
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BLUE CUBE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 MAY 2022
2.Accounting policies (continued)
Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the 9 months in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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BLUE CUBE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 MAY 2022
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the 9 months comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The Company adds to the carrying amount of an item of 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 profit or loss during the period in which they are incurred.
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BLUE CUBE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 MAY 2022
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Long-term leasehold property
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20% - 33.33% straight line
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25% - 33.33% straight line
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand, deposits, and cash in transit with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.
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BLUE CUBE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 MAY 2022
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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The average monthly number of employees, including directors, during the 9 months was 33 (2021 - 32).
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During the 9 months retirement benefits were accruing to no directors (2021 - NIL) in respect of defined
contribution pension schemes.
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BLUE CUBE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 MAY 2022
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Long-term leasehold property
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Charge for the 9 months on owned assets
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The net book value of land and buildings may be further analysed as follows:
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Due after more than one year
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BLUE CUBE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 MAY 2022
7.Debtors (continued)
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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BLUE CUBE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 MAY 2022
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Creditors: Amounts falling due after more than one year
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Secured loans, legal charges and securities
In September 2017, the Company entered into a loan facility with National Westminster Bank Plc, repayable over a 10 year term, attracting an interest rate of 1.95% over Base Rate. As at the year end, the balance outstanding on this loan facility was £2,039,382 (2021: £2,154,122). This loan facility is secured by a fixed charge over the property, dated 27 October 2017.
In September 2017, the Company entered into a loan facility with National Westminster Bank Plc, repayable over a 7 year term, attracting an interest rate of 2.1% over Base Rate. As at the year end, the balance outstanding on this loan facility was £77,072 (2021: £100,216). This loan facility is secured by a fixed charge over the property, dated 5 October 2017.
In November 2020, the Company secured a loan of £700,000 through a Coronavirus Business Interruption Loan Scheme. The loan is guaranteed by the UK Government. As at the year end, the balance outstanding on this loan facility was £630,000 (2021: £700,000).
Barclays Bank Plc has a deed of change dates 4 January 2011 over certain credit balances of the Company.
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The aggregate amount of liabilities repayable wholly or in part more than five years after the reporting date is:
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BLUE CUBE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 MAY 2022
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Amounts falling due after more than 5 years
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Allotted, called up and fully paid
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60,000 (2021 - 60,000) Ordinary shares of £1.00 each
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Capital redemption reserve
Capital redemption reserve records the nominal value of shares repurchased by the Company.
Profit and loss account
Includes all current and prior period retained profit and losses.
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BLUE CUBE TRAVEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED 31 MAY 2022
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £17,768 (2021: £20,558). Contributions totalling £7,392 (2021: £2,618) were payable to the fund at the balance sheet date and are included in creditors.
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Related party transactions
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During the period Blue Cube Travel Ghana Limited, a company under common control, repaid the Company £22,938 (2021: £29,128). As at the year end the Company was owed £48,051 (2021: £49,054) by Blue Cube Travel Ghana Limited.
As at the year end the Company was owed £9,905 (2021: £9,905) by Blue Cube Travel Services Limited, a company under common control as an advance.
Transactions with directors:
At the balance sheet date, the Company owed to a N. M. Fraser an amount of £9,491 (2021: £9,491).
At the balance sheet date, the Company was owed by a K. A. Stirling an amount of £72,326 (2021: £3,762 owed to the director).
Finally, at the balance sheet date, the Company was owed by a I.F. Phaure an amount of £45,669 (2021: £4,876 owed to the director).
Dividends of £Nil (2021: £332,000) in the year were paid to the directors.
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Post balance sheet events
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The directors have concluded that no material events have occurred since the date of approval of these financial statements that would affect the financial statements of the Company.
The auditors' report on the financial statements for the 9 months ended 31 May 2022 was unqualified.
The audit report was signed on 22 November 2022 by Yasin Khandwalla (Senior Statutory Auditor) on behalf of Xeinadin Audit Limited.
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