Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2021
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FIRST HOLIDAY FINANCE LTD
CONTENTS
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FIRST HOLIDAY FINANCE LTD
COMPANY INFORMATION
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FIRST HOLIDAY FINANCE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The directors present their report and the financial statements for the year ended 31 December 2021.
The directors are responsible for preparing the Directors' Report and the
financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year
. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙
make judgments and accounting estimates that are reasonable and prudent;
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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 to 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 and other information included in Directors' Reports may differ from legislation in other jurisdictions.
The directors who served during the year were:
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FIRST HOLIDAY FINANCE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
Financial risk management
Liquidity risk
In order to maintain liquidity and ensure that sufficient funds are available for ongoing operations and future developments, the company uses group debt finance.
Credit risk
Credit risk is the risk that one party of a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimizing such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Details of the company's debtors are shown in note 9 to the financial statements.
There have been no significant events affecting the Company since the year end.
The auditors, White Hart Associates (London) Limited, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
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FIRST HOLIDAY FINANCE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
This report was approved by the board on
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FIRST HOLIDAY FINANCE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRST HOLIDAY FINANCE LTD
We have audited the financial statements of FIRST HOLIDAY FINANCE LTD (the 'Company') for the year ended 31 December 2021, which comprise the Profit and Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity
and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 United Kingdom, including the Financial Reporting Council'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.
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.
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FIRST HOLIDAY FINANCE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRST HOLIDAY FINANCE LTD (CONTINUED)
The other information comprises the information included in the annual report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Directors' Report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
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FIRST HOLIDAY FINANCE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRST HOLIDAY FINANCE LTD (CONTINUED)
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FIRST HOLIDAY FINANCE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRST HOLIDAY FINANCE LTD (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 skepticism 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 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 conclude on the appropriateness of the director's 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 Auditors' Report.
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FIRST HOLIDAY FINANCE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRST HOLIDAY FINANCE LTD (CONTINUED)
This report is made solely to the Company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants and Statutory Auditors
2nd Floor, Nucleus House
2 Lower Mortlake Road
TW9 2JA
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FIRST HOLIDAY FINANCE LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
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FIRST HOLIDAY FINANCE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
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FIRST HOLIDAY FINANCE LTD
REGISTERED NUMBER:
07532241
BALANCE SHEET
AS AT
31 DECEMBER 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 23 form part of these financial statements.
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FIRST HOLIDAY FINANCE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2021
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FIRST HOLIDAY FINANCE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2020
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FIRST HOLIDAY FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
First Holiday Finance Limited is a private company limited by shares incorporated in England and Wales under the Companies Act 2006.
2.
Accounting policies
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 following principal accounting policies have been applied:
The directors are fully aware of their duty to assess the company’s going concern status and have attended to this with particular care in consideration of the current economic outlook. The company is part of the wider IDILIQ Group of companies. The ultimate parent company, Bejenno Holding Ltd, has confirmed its intention to continue to provide ongoing support to the company as required. Having considered the ability of Bejenno Holding Ltd to provide that support, based on the confirmation received, the directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook.
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
Functional and presentation currency
Transactions and balances
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FIRST HOLIDAY FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
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FIRST HOLIDAY FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
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FIRST HOLIDAY FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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 directors do not consider there to be any such sources of estimation uncertainity or critical accounting judgements in forming these financial statements.
Three external finance options are available to the consumer but the company also offers in-house finance. The financial statements include a bad debt provision to cover potential defaults which is based on historical records, leading to a default ratio of the in-house finance debt balance. The value of the bad debt provision is
£ 4.8m
(2020 - £7.1m)
The movement in the impairment provision for trade receivables is as follows:
Turnover represents amounts derived from the provision of credit services which fall within the company's ordinary activities after deduction of discounts. Revenue is recognised at the point of provision of services.
Analysis of turnover by country of destination:
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FIRST HOLIDAY FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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FIRST HOLIDAY FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
8.
Taxation (continued)
In the March 2021 Budget, the UK Govenment announced that legislation will be introduced in Finance Bill 2021 to increase the main rate of UK corporation tax from 19% to 25% effective 1 April 2023.
As the changed had not been substantively enacted at the balance sheet date, the deferred tax balances at 31 December 2021 continue to be meaured at a rate of 19%. The company doesn't recognise any deferred tax on the balance sheet at 31 December 2021.
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FIRST HOLIDAY FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Page 21
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FIRST HOLIDAY FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Financial Ombudsman Service
The company have received a number of claims lodged with the Financial Ombudsman Service (“FOS”) seeking to have their loans cancelled and to be reimbursed for sums paid plus interest and costs. In the past the company has been successful in defending such claims and FOS has decided in favour of First Holiday Finance Limited (“FHF”) but the directors of the company acknowledge that some of the claims are on appeal within FOS and that FOS could change its criteria and make rulings against FHF. In addition, FHF is aware that two different lenders are involved in Judicial Review cases to appeal rulings by FOS against them (“Other Lenders JR”) and the outcome of this could impact how FOS approaches some FHF claims relating to similar products as involved in the Other Lenders JR. The precise nature of the implications of the referenced Judicial Review, should the High Court rule in whole or partially in support of the FOS arguments, will not be clear until later in 2023. In the meantime, the directors anticipate that the company will need to challenge the application by FOS of decisions made in the Other Lenders JR to individual FHF claims and therefore wish to take a cautious approach: first, based on a worst case scenario if a certain percentage of the claims succeeded, they estimate the total liability could be between £5 million and £6 million and then to provide for a sum of £500,000 to cover comprehensive legal expenses including applying for judicial review where appropriate. However, given that FHF has to date successfully defended many of the claims, the directors consider that it is not necessary to make a provision in the financial statements but feel it prudent to disclose a contingent liability to the value of between £5 million and £6 million 6M in the company’s Financial Statements.
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FIRST HOLIDAY FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
The ultimate parent company is CLC Resort Management Limited, a company incorporated in the Isle of Man which is exempt of preparing consolidated financial statements.
The registered office address of CLC Resort Management Limited is 33 North Quay, Douglas, Isle of Man. In the opinion of the directors the ultimate controlling party is the Cavendish Trustees Limited.
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