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"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f12735": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfWarrantsEquity", "entity": "scheme:213800OC94PF2D675H41", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f12737": { "value": "3073000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfWarrantsEquity", "entity": "scheme:213800OC94PF2D675H41", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f12739": { "value": "3073000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfWarrantsEquity", "entity": "scheme:213800OC94PF2D675H41", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f12744": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:213800OC94PF2D675H41", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f12746": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:213800OC94PF2D675H41", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f12748": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:213800OC94PF2D675H41", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f12750": { "value": "2152000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:213800OC94PF2D675H41", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f12752": { "value": "2152000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:213800OC94PF2D675H41", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f12755": { "value": "1163000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f12757": { "value": "14328000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f12759": { "value": "45140000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f12761": { "value": "6475000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f12763": { "value": "67106000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f12767": { "value": "12000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IssueOfEquity", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f12769": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IssueOfEquity", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f12771": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IssueOfEquity", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f12773": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IssueOfEquity", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f12775": { "value": "12000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IssueOfEquity", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f12779": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f12781": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f12783": { "value": "-17263000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f12785": { "value": "-11000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f12787": { "value": "-17274000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f12791": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f12793": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f12795": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f12797": { "value": "2399000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f12799": { "value": "2399000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f12804": { "value": "0", "decimals": -3, "dimensions": { "concept": "hsw:TransferOfExercisedAndExpiredShareBasedAwards", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f12806": { "value": "0", "decimals": -3, "dimensions": { "concept": "hsw:TransferOfExercisedAndExpiredShareBasedAwards", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f12808": { "value": "2431000", "decimals": -3, "dimensions": { "concept": "hsw:TransferOfExercisedAndExpiredShareBasedAwards", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f12810": { "value": "-2431000", "decimals": -3, "dimensions": { "concept": "hsw:TransferOfExercisedAndExpiredShareBasedAwards", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f12812": { "value": "0", "decimals": -3, "dimensions": { "concept": "hsw:TransferOfExercisedAndExpiredShareBasedAwards", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f12815": { "value": "1175000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800OC94PF2D675H41", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f12817": { "value": "14328000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800OC94PF2D675H41", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f12819": { "value": "30308000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800OC94PF2D675H41", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f12821": { "value": "6432000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800OC94PF2D675H41", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f12823": { "value": "52243000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800OC94PF2D675H41", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f12835": { "value": "
Consolidated Statement of Cash Flows
\n
for the year ended 31 December 2022
\n
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Cash flows from operating activities
\n
Loss before tax
(17,912)
(36,578)
\n
Amortisation and depreciation
11,597
12,411
\n
Impairment of intangible assets
10
\u2013
367
\n
Share of results of associate
13
206
225
\n
Net profit on disposal of leases
4
(1)
(793)
\n
Net loss on disposal property, plant and equipment
4
1
492
\n
Finance expense
7
4,301
3,501
\n
Employee equity settled share-based payment expense
22
2,396
2,162
\n
Changes in working capital items:
\n
Increase in trade and other payables
1,457
5,074
\n
Increase in trade and other receivables
(1,244)
(321)
\n
Cash generated from/(used by) operations
801
(13,460)
\n
Interest paid (including lease interest)
(1,370)
(155)
\n
Income tax paid
(180)
(136)
\n
Net cash used in operating activities
(749)
(13,751)
\n
Cash flows from investing activities
\n
Acquisition/development of intangible assets
10
(4,597)
(4,397)
\n
Purchases of property, plant and equipment
11
(196)
(75)
\n
Net cash used in investing activities
(4,793)
(4,472)
\n
Cash flows from financing activities
\n
Deferred consideration
13
\u2013
(345)
\n
Proceeds from borrowings
20
\u2013
28,800
\n
Transaction costs relating to borrowings
20
\u2013
(862)
\n
Repayment of borrowings
20
\u2013
(1,164)
\n
Repayments of obligations under lease liabilities
14
(752)
(1,160)
\n
Net cash (used in)/from financing activities
(752)
25,269
\n
Net (decrease)/increase in cash and cash equivalents
(6,294)
7,046
\n
Cash and cash equivalents at the beginning of the year
25,267
18,189
\n
Effect of foreign exchange rate changes
(11)
32
\n
Cash and cash equivalents at the end of the year
16
18,962
25,267
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General Information
\n
Hostelworld Group plc, hereinafter \u201cthe Company\u201d, is a public limited Company incorporated in the United Kingdom
\n
on the 9 October 2015 under the Companies Act 2006 and is registered in England and Wales. The registered
\n
office of the Company is One Chamberlain Square, Birmingham, B3 3AX, United Kingdom.
\n
The Company and its subsidiaries (together \u201cthe Group\u201d) provide software and data processing services that facilitate
\n
hostel, B&B, hotel and other accommodation bookings worldwide.
\n
The Company\u2019s shares are quoted on Euronext Dublin and the London Stock Exchange.
\n
The Company and consolidated financial statements were approved and authorised for issue by the Board of
\n
Directors on 21 March 2023.
\n
Going concern
\n
The Directors, after making enquiries, have a reasonable expectation that the Group and Company has adequate
\n
resources to continue operating as a going concern for the foreseeable future.
\n
Since the beginning of the COVID-19 pandemic, the Group has maintained strong discipline over its cost base and
\n
cash reserves, with trading and cash forecasts being prepared on a weekly basis. Actions taken in the current period
\n
by the Directors to preserve the Group\u2019s cash position include the non-payment of cash dividends, the elimination
\n
of all non-essential operating costs including marketing, recruitment, travel and other variable overheads, the
\n
employment of a procurement manager to closely monitor and challenge contract spend in place, the non-payment
\n
of cash bonuses and the issuance of a restricted stock option in lieu of a cash bonus to employees, exiting our long
\n
term lease commitment facilities in favour of smaller office spaces across our locations, organisational redesigns
\n
and associated headcount reductions, and Government COVID-19 supports in Ireland which were availed of until
\n
February 2022, as well as warehousing of Irish employer and employee taxes incurred to March 2022.
\n
The 2023 budget has been prepared on a 12-month calendar basis, with the Board also approving a further four-year
\n
outlook, which has also been considered within going concern to capture a period of one year from date of signing.
\n
Revenue and marketing cost projections within Budget 2023 have been developed by triangulating three different
\n
models, where each model output has helped to validate the others.
\n
1.
Regional level forecasting reflecting an easing of the remaining travel restrictions in place. From 2020 through
\n
2022 we can evidence a correlated increase in revenue when borders reopen. We have assumed a full recovery
\n
to pre-pandemic booking levels in 2023 in our largest markets, with other markets taking longer. Forecasting
\n
at a regional level allows us to forecast specific bed prices, booking models, geographic mix and seasonality
\n
effectively in our modelling;
\n
2.
Channel mix between free and paid customers where assumptions are made based on volume of new
\n
customer acquisitions, cost of customer acquisitions and anticipated bookings based on marketing spend;
\n
3.
Modelling new and returning customers by using statistical models built using over 15 years of customer data.
\n
This rich customer cohort data set enables us to model recurring revenue streams, with a high degree of
\n
predictability. We layer in additional knowledge on new customer acquisition costs and expected economics
\n
between free and paid customers.
\n
Forecasting at this regional and channel level also allows us to adjust for bed price inflation and cost of living pressures.
\n
These risks are somewhat mitigated as our target 18-34
-year-old population typically have the means and the
\n
flexibility to travel, tending to view it as a \u2018rite of passage\u2019 rather than purely discretionary spend. Hostels are a
\n
cost-effective means to travel and our strategy focuses on customers connecting on a free platform that we provide.
We have assumed in Budget 2023 a modest contraction in our ABV year on year, provisioning for unit bed price
\n
deflation versus 2022 and increased volume from Asian markets, where bed prices are lower. We have modelled
\n
modest price inflation in our operating costs.
\n
We have not assumed any revenue from partnerships such as Roamies, Goki and Counter in our financial modelling.
\n
Climate related risks can impact our business as a customer may not want to travel, a hostel may be forced to close,
\n
or an area is not accessible. The budgeting process has incorporated all operating costs relating to our sustainability
\n
roadmap, as well as the cost of future emission reductions and offsets. Following an assessment completed by
\n
the Group, the budget does not contain any other liabilities, provisions or contingent liabilities relating to climate
\n
change. Revenue cashflows included in the budgeting process have captured for example the impacts of adverse
\n
weather conditions experienced by the Group in 2022 as we model based on historic run rates at a country and
\n
seasonal level.
\n
In addition to our base budget for 2023, we have prepared three additional scenarios that depict different recovery
\n
levels and trading volumes. An upside scenario tracks an increase in revenue and operating expenses. A downside
\n
scenario includes reduced revenue while maintaining the same level of operating spend. A worst-case includes
\n
further reduced revenue with a reduction in operating cost spend to mitigate. Under all scenarios, the Group has
\n
sufficient cash reserves available and remains compliant with financial covenants under its current term loan facility
\n
agreement with HPS Investment Partners LLC (or subsidiaries or affiliates thereof). The Group has also set out in its
\n
viability statement on pages 46 to 49 additional scenarios considered by the Group in its assessment of going concern.
\n
The directors took steps to ensure adequate liquidity is available to the Group for the duration of the pandemic and
\n
recovery period. On 19 February 2021 the Group signed a \u20ac30m five-year term loan facility with certain investment
\n
funds and accounts of HPS Investment Partners LLC (or subsidiaries or affiliates thereof). An amount of \u20ac28.8m was
\n
received on 23 February 2021. The key features of the facility are as follows:
\n
\u2022
The facility is single drawdown and bears interest at a margin of 9.0% per annum over EURIBOR (with a EURIBOR
\n
floor of 0.25% per annum).
\n
\u2022
Financial covenants comprise (1) adjusted net leverage (Hostelworld has to ensure that total net debt is no more
\n
than 3.0 x adjusted EBITDA from 31 December 2023 to 30 September 2024, and no more than 2.5 x adjusted
\n
EBITDA from 31 December 2024 onwards); and (2
) minimum liquidity (Hostelworld has to ensure that at close
\n
of business on the last business day of each month until it is testing the adjusted net leverage ratios there is
\n
free cash in members of the Group which have guaranteed repayment of the facility of at least \u20ac6.0 million).
\n
\u2022
Security on the facility includes the share capital of the Group, the bank accounts of the Group and the Group\u2019s
\n
intellectual property.
\n
We were in compliance with our minimum liquidity covenants at 31 December 2022.
\n
At this point in time, the consequences of the current unrest in Ukraine are uncertain. We have not experienced a
\n
significant impact to our revenue during 2022, and we continue to monitor any development in the conflict, and the
\n
impact to the Group closely. The Group has no operations in either Russia or Ukraine and total forecasted revenues
\n
for 2022 in these regions was less than 0.01% of the Group\u2019s net revenue. No revenue has been budgeted for these
\n
countries in 2023.
\n
Having considered the Group\u2019s Board approved 2023 budget, cash flow forecasts prepared for 12 months from 21 March
\n
2023, current and anticipated trading volumes, current and anticipated levels of cash and debt, together with mitigating
\n
actions available, the Directors are satisfied that the Group and Company has sufficient resources to continue in
\n
operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly,
\n
they continue to adopt the going concern basis in preparing the Group financial statements.
1. Significant accounting policies
continued
\n
Basis of Preparation
\n
The financial statements have been prepared in conformity with the requirements of the Companies Act 2006 and
\n
UK adopted International Financial Reporting Standards (IFRS) and IFRS adopted pursuant to Regulation (EC)
\n
No 1606/2002 as it applies in the European Union.
\n
The consolidated financial statements also comply with Article 4 of the EU IAS Regulation. References to IFRS
\n
hereafter refer to UK adopted IFRS and IFRS adopted by the EU.
\n
The consolidated financial statements have been prepared under the historical cost basis. The investment in
\n
associate is accounted for using the equity method.
\n
In the preparation of these consolidated financial statements the accounting policies set out below have been
\n
applied consistently by all Group companies. The consolidated financial statements are presented in euro which is
\n
the currency of the primary economic environment in which the Group operates.
\n
Re-presentation
\n
Certain comparative amounts in note 4 operating expenses and note 6 staff costs have been re-presented to exclude
\n
third party contractor costs, on a basis consistent with the current year. Comparative amounts in the Income
\n
Statement and note 4 operating expenses have been re-presented to disclose any reversals of impairment of trade
\n
receivables on the face of the Income Statement. For both items, there is no impact on net assets, or the Group\u2019s
\n
loss for the period ended 31 December 2021.
\n
In addition, upon review of the April 2022 IFRIC Agenda item \u201cDemand Deposits with Restrictions on Use arising
\n
from a Contract with a Third Party (IAS 7 Statement of Cash Flows) \u2013 Agenda Paper 3\u201d the Group has changed the
\n
presentation of cash and cash equivalents which are not available for use for the period ended 31 December 2021.
\n
The amount of \u20ac750k, which relates to a rental guarantee in place, has been classified in non-current assets as
\n
the guarantee was in place for a period of longer than 12 months after balance sheet date. This has no impact on
\n
net assets, net debt or the Group\u2019s loss for the period ended 31 December 2021.
\n
Basis of consolidation
\n
Subsidiaries
\n
The consolidated financial statements incorporate the financial statements of the Company and entities controlled
\n
by the Company (its subsidiaries) all of which prepare financial statements up to 31 December.
\n
Control is achieved when the Company has the power over the investee, is exposed, or has rights, to variable return
\n
from its investment with the investee and has the ability to use its power to affect its returns. The financial statements
\n
of subsidiaries are included in the consolidated financial statements from the date that control commences until the
\n
date that control ceases. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to
\n
transactions between the members of the Group are eliminated on consolidation. Unrealised losses are also eliminated,
\n
except where they provide evidence of impairment.
\n
Associates
\n
Associates are entities over which the Group has significant influence but not control, generally accompanying a
\n
shareholding of between 20% and 50% of the voting rights. Significant influence is the power to participate in the
\n
financial and operating policy decisions of the investee but is not control over those policies.
\n
Investments in associates are accounted for using the equity method of accounting and are initially recognised at
\n
cost. On acquisition of the investment in associate, any excess of the cost of the investment over the Group\u2019s share
\n
of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included
\n
within the carrying value of the investment.
The Group\u2019s share of its associates\u2019 post-acquisition profits or losses is recognised in \u2018Share of results of associate\u2019
\n
in the consolidated income statement, and its share of post-acquisition movements in reserves is recognised in the
\n
consolidated statement of changes in equity. The cumulative post-acquisition movements are adjusted against the
\n
carrying amount of the investment, less any impairment in value. Where indicators of impairment arise, the carrying
\n
amount of the associate is tested for impairment by comparing its recoverable amount with its carrying amount.
\n
The requirements of IAS 36 are applied to determine whether it is necessary to recognise any impairment loss with
\n
respect to the Group\u2019s investment in an associate. When necessary, the entire carrying amount of the investment
\n
(including goodwill) is tested for impairment in accordance with IAS 36 as a single asset by comparing its recoverable
\n
amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss
\n
recognised is not allocated to any asset, including goodwill that forms part of the carrying amount of the investment.
\n
Any reversal of that impairment loss is recognised in accordance with IAS 36 to the extent that the recoverable
\n
amount of the investment subsequently increases.
\n
Unrealised gains arising from transactions with associates are eliminated to the extent of the Group\u2019s interest in the
\n
entity. Unrealised losses are eliminated to the extent that they do not provide evidence of impairment. When the
\n
Group\u2019s share of losses in an associate equals or exceeds its interest in the associate, the Group does not recognise
\n
further losses unless the Group has incurred obligations or made payments on behalf of the associate. The accounting
\n
policies of associates are amended where necessary to ensure consistency of accounting treatment at Group level.
\n
When the Group ceases to have significant influence, any retained interest in the entity is re-measured to its fair value
\n
at the date when significant influence is lost with the change in carrying amount recognised in the consolidated
\n
income statement. The Group also reclassifies any movements previously recognised in other comprehensive
\n
income to the consolidated income statement.
\n
Business combinations
\n
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a
\n
business combination is measured at fair value, which is calculated as the sum of the acquisition date fair values
\n
of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and
\n
the equity interests issued by the Group in exchange for control of the acquiree.
\n
Acquisition related costs are recognised in the consolidated income statement as incurred.
\n
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value
\n
at the acquisition date, except that:
\n
\u2022
Deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised
\n
and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;
\n
\u2022
Liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
\n
payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree
\n
are measured in accordance with IFRS 2 Share-based Payment at the acquisition date; and
\n
\u2022
Assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held
\n
for Sale and Discontinued Operations are measured in accordance with that standard.
\n
The fair value of the assets and liabilities are based on valuations using assumptions deemed by management to
\n
be appropriate. Professional valuers are engaged when it is deemed appropriate to do so.
\n
Goodwill represents the excess of the aggregate of the consideration transferred and the amount of any non-
\n
controlling interest in the acquired entity over the net identifiable assets acquired.
1. Significant accounting policies
continued
\n
Non-controlling interests
\n
Non-controlling interests represent the portion of the equity of a subsidiary not attributable either directly or
\n
indirectly to the Group and are presented separately in the consolidated income statement and within equity in the
\n
consolidated statement of financial position, distinguished from shareholders\u2019 equity attributable to the owners of
\n
the parent Company.
\n
New standards, amendments and interpretations issued and adopted by the Group in 2022:
\n
The following changes to IFRS became effective for the Group during the year but did not result in material changes
\n
to the Group\u2019s consolidated financial statements:
\n
\u2022
Reference to the Conceptual Framework (Amendments to IFRS 3)
\n
\u2022
Property, Plant and Equipment \u2014 Proceeds before Intended Use (Amendments to IAS 16)
\n
\u2022
Onerous Contracts \u2014 Cost of Fulfilling a Contract (Amendments to IAS 37)
\n
\u2022
Annual Improvements to IFRS Standards 2018-2020
\n
New and amended standards and interpretations not yet mandatorily effective
\n
The Group has not applied certain new standards, amendments and interpretations to existing standards which are
\n
not yet mandatorily effective and have not yet been endorsed by the UK or by the EU, in some instances:
\n
\u2022
Leases COVID-19 \u2013 Related Rent Concessions beyond 30 June 2021 (Amendments to IFRS 16)
\n
\u2022
Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)
\n
*
\n
\u2022
Classification of Liabilities as Current or Non-Current \u2013 Deferral of Effective Date (Amendments to IAS 1)
\n
*
\n
\u2022
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
\n
\u2022
Definition of Accounting Estimates (Amendments to IAS 8)
\n
\u2022
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)
\n
\u2022
Initial Application of IFRS 17 and IFRS 9 \u2013 Comparative Information (Amendment to IFRS 17)
\n
\u2022
Insurance Contracts \u2013 Amendments to IFRS 17
\n
\u2022
Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4)
\n
\u2022
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
\n
\u2022
Non-current Liabilities with Covenants (Amendments to IAS 1)
\n
*
\n
Not yet endorsed by the EU and/or UK
\n
Revenue recognition
\n
The Group generates substantially all of its revenues from the technology and data processing fees and service fees
\n
that it charges to accommodation providers and the transaction service fees it charges to consumers. The Group
\n
also generates revenues from technology and data processing fees that it charges to providers of other travel
\n
products and associated transaction service fees, from cancellation protection fees, payment protection fees and
\n
from advertising services.
\n
Revenue is recognised at the time the reservation is made in respect of non-refundable commission on the basis
\n
that the Group has met its performance obligations having provided the technology and data processing service at
\n
the time the booking is made. In respect of the free cancellation product, which offers the traveller the opportunity
\n
to make a booking on a free cancellation basis and to receive a refund of their deposit in certain circumstances,
\n
such related revenue is not recognised until the last cancellation date has passed as one party can withdraw from
\n
the contract until such a date has passed, at which point the Group will have met its performance obligation.
Where the Group provides an ancillary service to allow a flexible booking option which allows a booking to be
\n
cancelled for no charge or a new booking to be made, such revenue is deferred, until such time as the related
\n
check-in date has passed or for a six-month period from the date of cancellation, at which time the credit expires.
\n
Where credits are granted to customers for utilisation on future bookings, a provision is recorded against revenue
\n
based on the probability that a credit offering will be used by a customer.
\n
Ancillary advertising and property management technology revenues (Counter) are recognised over the period when
\n
the service is performed as the Group\u2019s performance obligation is met over time. Royalties and commission amounts
\n
earned from the \u201cRoamies\u201d revenue streams are recognised on the trip\u2019s start date, when the Group\u2019s performance
\n
obligations are met. Revenue is measured at the fair value of the consideration received or receivable.
\n
Revenue is stated net of rebates, sales taxes and value added taxes.
\n
Leases
\n
The Group leases properties across a number of locations. Rental contracts are typically made for fixed periods
\n
but may have an option to extend. Lease terms are negotiated on an individual basis and contain a wide range of
\n
different terms and conditions.
\n
At inception of a contract, the Group assesses whether a contract is or contains a lease, at inception of the contract.
\n
For contracts where the Group is a lessee, a right-of-use asset is recognised, representing the Group\u2019s right to use
\n
the underlying asset and a lease liability is also recognised for the Group\u2019s obligation to make lease payments during
\n
the lease term. The lease term of each contract is determined as the non-cancellable period of the lease, together
\n
with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods
\n
covered by an option to terminate the lease (break option), if it is reasonably certain not to exercise that option.
\n
For short term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets
\n
(defined as leases with an underlying asset value of \u20ac10,000 or less), the Group recognises the lease payments as
\n
an operating expense on a straight-line basis over the term of the lease.
\n
The right-of-use asset is initially measured at cost and subsequently valued at cost less accumulated depreciation
\n
and impairment losses. It is adjusted where a lease modification results in a remeasurement of the lease liability.
\n
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset.
\n
The depreciation starts at the commencement date of the lease.
\n
Whenever the Group incurs an obligation to restore the underlying asset to the condition required by the terms and
\n
conditions of the lease, a provision is recognised and measured under IAS 37. To the extent that the costs relate to
\n
a right-of-use asset, the costs are included in the related right-of-use asset.
\n
The carrying value of these assets are reviewed at the end of each reporting period to determine whether there is
\n
any indication that the assets have suffered an impairment loss. The Group applies IAS 36 to determine whether a
\n
right-of-use asset is impaired and accounts for any identified impairment loss as described in the \u2018Property, Plant
\n
and Equipment\u2019 policy.
\n
Lease liabilities are measured at the present value of the future lease payments. The lease payments are discounted
\n
using the implicit interest rate in the lease or where this cannot readily be determined the Group use the Group\u2019s
\n
incremental borrowing rate. The incremental borrowing rate depends on the term, currency and start date of the
\n
lease and is determined based on a series of inputs including: the risk-free rate based on government bond rates;
\n
a country-specific risk adjustment and a credit risk adjustment based on bond yields. Subsequently the lease
\n
liability is increased to reflect interest on the lease liability and reduced for payments made. The lease liability is
\n
remeasured for lease modifications or reassessments.
1. Significant accounting policies
continued
\n
Lease payments included in the measurement of the lease liability comprise: (i) Fixed lease payments less any lease
\n
incentives receivable; (ii) Variable lease payments that depend on an index or rate, initially measured using the index
\n
or rate at the commencement date; (iii) The amount expected to be payable by the lessee under residual value
\n
guarantees; (iv) The exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
\n
and (v) Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate
\n
the lease.
\n
The lease liability is presented as a separate line in the consolidated statement of financial position. The lease
\n
liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using
\n
the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
\n
The Group re-measures the lease liability (and makes a corresponding adjustment to the related right-of-use asset)
\n
whenever: (i) The lease term has changed or there is a significant event or change in circumstances resulting in
\n
a change in the assessment of exercise of a purchase option, in which case the lease liability is re-measured by
\n
discounting the revised lease payments using a revised discount rate. (ii) The lease payments change due to changes
\n
in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease
\n
liability is remeasured by discounting the revised lease payments using an unchanged discount rate (iii) A lease
\n
contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease
\n
liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments
\n
using a revised discount rate at the effective date of the modification.
\n
Cash paid on the interest portion of a lease liability is included as part of operating activities in the consolidated cash
\n
flow statement and cash payments for the principal portion of a lease liability are included as part of financing activities.
\n
Payments in relation to short term leases and leases of low value assets that do not meet the criteria to be capitalised
\n
under IFRS 16 are included as part of operating activities in the consolidated cash flow statement.
\n
Exceptional items
\n
Exceptional items by their nature and size can make interpretation of the underlying trends in the business more
\n
difficult. Such items may include restructuring, material merger and acquisition costs, profit or loss on disposal or
\n
termination of operations, litigation settlements, legislative changes, material acquisition integration costs and
\n
profit or loss on disposal of investments. Judgement is used by the Group in assessing the particular items which
\n
by virtue of their scale and nature should be disclosed as exceptional items. Where an item that has been classified
\n
as exceptional spans more than one reporting period such as a multi-year restructuring programme, it will also be
\n
presented as exceptional in the following period for consistency of presentation.
\n
Taxation
\n
The tax expense represents the sum of the tax currently payable and deferred tax.
\n
Current tax
\n
The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported
\n
in the consolidated income statement because it excludes items of income or expense that are taxable or deductible
\n
in other years and it further excludes items that are never taxable or deductible. The Group\u2019s liability for current tax
\n
is calculated using tax rates that have been enacted or substantively enacted by the reporting date, and any
\n
adjustment to tax payable in respect of previous years.
\n
A provision is recognised for those matters for which the tax determination is uncertain, but it is considered probable
\n
that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of
\n
the amount expected to become payable. The assessment is based on the judgement of tax professionals within the
\n
Company supported by previous experience in respect of such activities and in certain cases based on specialist
\n
independent tax advice.
Deferred tax
\n
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets
\n
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit
\n
and is accounted for using the liability method. Deferred tax liabilities are generally recognised for all taxable
\n
temporary differences and deferred tax assets are recognised for unused tax losses, unused tax credits and
\n
deductible temporary differences to the extent that it is probable future taxable profits will be available against
\n
which the temporary difference can be utilised.
\n
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and
\n
associates, except where the Group is able to control the reversal of the temporary difference and it is probable that
\n
the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible
\n
temporary differences associated with such investments and interests are only recognised to the extent that it is
\n
probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences
\n
and they are expected to reverse in the foreseeable future.
\n
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is
\n
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
\n
Such reductions are reversed when the probability of future taxable profits improves.
\n
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
\n
against current liabilities and when they relate to income taxes levied by the same taxation authority and the Group
\n
intends to settle its current tax assets and liabilities on a net basis.
\n
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or
\n
the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the balance
\n
sheet date. Deferred tax is charged or credited in the consolidated income statement, except when it relates to
\n
items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
\n
Foreign currencies
\n
The individual financial statements of each Group Company are presented in the currency of the primary economic
\n
environment in which it operates (its functional currency). For the purpose of the consolidated financial statements,
\n
the results and financial position of each Group Company are expressed in euro, which is the functional currency
\n
of the parent Company and the presentation currency for the consolidated financial statements.
\n
In preparing the financial statements of the individual companies, transactions in currencies other than the entity\u2019s
\n
functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions.
\n
At each reporting date, monetary assets and liabilities denominated in foreign currencies are retranslated at the
\n
rates prevailing on the reporting date.
\n
Non-monetary items (including deferred revenue) carried at fair value that are denominated in foreign currencies
\n
are translated at the rates prevailing at the date when the fair value was determined in accordance with IFRIC 22.
\n
Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
\n
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are
\n
included in the consolidated income statement and consolidated statement of comprehensive income for the period.
\n
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group\u2019s operations
\n
are translated at exchange rates prevailing on the reporting date. Income and expense items are translated at the
\n
average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which
\n
case the exchange rates at the date of transactions are used. Exchange differences arising, if any, are classified
\n
as equity and transferred to the Group\u2019s foreign currency translation reserve.
1. Significant accounting policies
continued
\n
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities
\n
of the foreign entity and translated at the closing rate. Exchange differences arising are recognised in other
\n
comprehensive income.
\n
Retirement benefits costs
\n
The Group operates a defined contribution pension scheme. Contributions made in respect of employees\u2019 pension
\n
schemes are charged through the consolidated income statement in the period they become payable. The Group
\n
pays contributions to privately administered pension insurance plans. The Group has no further payment obligations
\n
once the contributions have been paid. The contributions are recognised as employee benefit expense when they
\n
are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the
\n
future payments is available.
\n
Property, plant and equipment
\n
Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
\n
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, using the straight-line
\n
method. The estimated useful lives, residual values and depreciation method are reviewed at each year end, with
\n
the effect of any changes in estimate accounted for on a prospective basis.
\n
Right-of-use assets are depreciated over the shorter period of the lease term and the useful life of the underlying asset.
\n
Depreciation is provided on the following basis:
\n
Leasehold property improvements
5-10 years straight line
\n
Computer equipment
3-5 years straight line
\n
Fixtures and equipment
6-7 years straight line
\n
Leasehold improvements are improvements made to buildings leased by the Group when it has the right to use these
\n
leasehold improvements over the term of the lease. The improvements will revert to the lessor at the expiration of
\n
the lease.
\n
The cost of a leasehold improvement is depreciated over the shorter of:
\n
1.
The remaining lease term, or
\n
2.
The estimated useful life of the improvement.
\n
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
\n
expected to arise from the continued use of the asset. The gain or loss arising on the disposal of an asset is
\n
recognised in the consolidated income statement when the asset is derecognised.
\n
In accordance with IAS 36 \u2018Impairment of Assets\u2019
, the carrying amounts of items of property, plant and equipment
\n
are reviewed at each reporting date to determine whether there is any indication of impairment. An impairment loss
\n
is recognised whenever the carrying amount of an asset exceeds its recoverable amount.
\n
Impairment losses are recognised in the consolidated income statement. Following the recognition of an impairment
\n
loss, the depreciation charge applicable to the asset is adjusted prospectively in order to systematically allocate
\n
the revised carrying amount over the remaining useful life.
Intangible assets
\n
Goodwill
\n
Goodwill is initially measured as the excess of the cost of the business combination over the Group\u2019s interest in the
\n
net fair value of the identifiable assets, liabilities and contingent liabilities of the acquired subsidiary or associate.
\n
Identifiable intangible assets, meeting either the contractual-legal or separability criterion are recognised separately
\n
from goodwill.
\n
Goodwill on acquisition of subsidiaries is included within intangible assets. Goodwill associated with the acquisition
\n
of associates is included within the interest in associates under the equity method of accounting.
\n
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.
\n
Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicated
\n
that the carrying value may be impaired.
\n
For the purposes of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (CGU)
\n
that is expected to benefit from the synergies of the combination.
\n
If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated
\n
first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit on a
\n
pro-rata basis based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised
\n
directly in profit or loss in the consolidated income statement. An impairment loss recognised for goodwill is not
\n
reversed in subsequent periods.
\n
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination
\n
of the gain or loss on disposal.
\n
Other intangible assets
\n
The Group has four classes of other intangible assets: domain names, technology assets, affiliate contracts and
\n
development costs.
\n
Other intangible assets are capitalised at cost and amortised to operating expenses before impairment in the
\n
consolidated income statement on a straight-line basis over their estimated useful lives:
\n
Domain names:
5-20 years
\n
Technology assets:
4 years
\n
Affiliate contracts:
5 years
\n
Capitalised development costs:
2-5 years
\n
Domain names relate to certain domain names, trademarks and technology assets which are carried at cost less
\n
accumulated amortisation and are amortised over their useful life. Technology assets here include the website, App
\n
interfaces, application programming interfaces (APIs) that allow applications to interface and databases which
\n
collectively form the underlying integrated Hostelworld Platform.
\n
Affiliate contracts refers to contracts established with certain affiliate partners whose function is to promote the
\n
website and App. These contracts were identified as a separately identifiable asset in line with IAS 38 \u2018Intangible Assets\u2019
\n
which allow affiliates to get real time access to property, pricing and availability function through affiliate APIs.
\n
Technology assets relates to certain computer software applications stated at cost less accumulated amortisation.
\n
Costs incurred on the acquisition of computer software are capitalised, as are costs directly associated with developing
\n
computer software programmes for internal use, if they meet the recognition criteria of IAS 38 \u2018Intangible Assets\u2019
.
1. Significant accounting policies
continued
\n
Development expenditure in relation to internally-generated intangible assets is capitalised when all of the following
\n
have been demonstrated; the technical feasibility of completing the intangible asset so that it will be available for use;
\n
the intention to complete the project to which the intangible asset relates and to use it or sell it; the ability to use
\n
or sell the intangible asset, how the intangible asset will generate probable future economic benefits; the availability
\n
of adequate technical, financial and other resources to complete the development and to use the intangible asset;
\n
and the ability to measure reliably the expenditure attributable to the intangible asset during its development.
\n
Development activities involve a plan or design for the production of new or substantially improved products or
\n
processes. Directly attributable costs that are capitalised as part of the software product, website or system include
\n
employee costs. Other development expenditures that do not meet these criteria as well as ongoing maintenance
\n
are recognised as an expense as incurred.
\n
An intangible asset is derecognised on disposal or when no future economic benefits are expected to arise from
\n
the continued use or disposal of the asset. The gain or loss arising on the disposal of an asset is recognised in the
\n
consolidated income statement when the asset is derecognised.
\n
The residual value associated with all intangible assets is deemed to be \u20acnil.
\n
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
\n
Impairment of tangible and intangible assets other than goodwill
\n
At the end of each reporting period, the Directors review the carrying amounts of the Group\u2019s tangible and intangible
\n
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such
\n
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment
\n
loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Directors estimate
\n
the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent
\n
basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or
\n
otherwise they are allocated to the smallest Group of cash-generating units for which a reasonable and consistent
\n
allocation basis can be identified.
\n
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment
\n
at least annually, and whenever there is an indication that the asset may be impaired.
\n
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the
\n
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
\n
market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an
\n
asset (or a cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset
\n
(or the cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately
\n
in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is
\n
treated as a revaluation decrease.
\n
Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is
\n
increased to the revised estimate of its recoverable amount. The increased carrying amount cannot exceed the
\n
carrying amount that would have been determined had no impairment loss been recognised for the asset (or the
\n
cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss,
\n
unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is
\n
treated as a revaluation increase.
Financial instruments
\n
Financial assets and financial liabilities are recognised in the Group\u2019s consolidated statement of financial position
\n
when the Group becomes a party to the contractual provisions of the instrument.
\n
Financial assets and liabilities are initially measured at fair value plus transaction costs, except for those classified
\n
as fair value through profit or loss, which are initially measured at fair value. The fair value of financial assets and
\n
liabilities denominated in a foreign currency is determined in that foreign currency and translated at the spot rate
\n
at the end of the reporting period.
\n
(a) Classification of financial assets
\n
Trade and other receivables
\n
Trade and other receivables are stated initially at their transaction price and subsequently at amortised cost, less
\n
any expected credit loss provision. The Group applies the simplified approach to measuring expected credit losses
\n
which uses a lifetime expected credit loss allowance for all trade receivables.
\n
(b) Expected credit loss of financial assets
\n
The Group always recognises lifetime expected credit losses (ECLs) for trade receivables estimated using a provision
\n
matrix based on the Group\u2019s historical credit loss experience, adjusted for factors that are specific to the debtors,
\n
general economic conditions and an assessment of both the current as well as the forecast direction of conditions
\n
at the reporting date, including time value of money where appropriate.
\n
Lifetime ECLs represents the expected credit losses that will result from all possible default events over the expected
\n
life of a financial instrument. ECLs are reported in the consolidated income statement. An event of default occurs
\n
where there is failure by a debtor to fulfil an obligation and there is no likely recourse available. For example, if a
\n
hostel has gone out of business.
\n
(c) Classification of financial liabilities
\n
Trade and other payables
\n
Trade and other payables are initially recorded at fair value, which is usually the original invoiced amount, and
\n
subsequently carried at amortised cost. Liabilities are derecognised when the obligation under the liability is
\n
discharged, cancelled or expires.
\n
Loans and borrowings
\n
All loans and borrowings are initially recognised at fair value of the proceeds received less any directly attributable
\n
transaction costs. Transaction costs include fees and commission paid to agents, advisers brokers and dealers. After
\n
initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
\n
effective interest method being the amount at which the financial liability is measured at initial recognition minus any
\n
principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference
\n
between that initial amount and the maturity amount. Borrowings are de-recognised when the Group\u2019s obligations
\n
specified in the contracts expire, are discharged or cancelled. Borrowings are classified as current liabilities unless
\n
the Group has an unconditional right to defer settlement of the liability for at least 12 months after the financial
\n
position date.
\n
Other financial liabilities
\n
Financial liabilities are recognised initially at fair value and are subsequently stated at amortised cost using the
\n
effective interest method. The effective interest method is a method for calculating the amortised cost of a financial
\n
liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
\n
discounts estimated future cash payments through the expected life of the financial liability to the amortised cost
\n
of a financial liability.
\n
Financial liabilities are classified as current liabilities unless the Group has an unconditional right to defer settlement
\n
of the liability for at least 12 months after the reporting date. The Directors determine the classification of the Group\u2019s
\n
financial liabilities at initial recognition.
1. Significant accounting policies
continued
\n
(d) Cash and cash equivalents
\n
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly
\n
liquid investments with original maturities of three months or less. Restricted cash and cash equivalent balances
\n
are those which meet the definition of cash and cash equivalents but are not available for use by the Group.
\n
Recognition of warrants
\n
Warrant reserve is recorded at the fair value of warrants issued. Warrants have been recognised as equity instruments
\n
as each warrant issued entitles the holder to a fixed number of ordinary shares in exchange for a fixed exchange
\n
price of \u20ac0.01 per ordinary equity share.
\n
Dividends
\n
Final dividends are recorded in the Group\u2019s financial statements in the period in which they are approved by the
\n
Company\u2019s shareholders. Interim dividends are recorded in the period in which they are paid.
\n
Share based payments
\n
Equity settled share-based payments to employees are measured at the fair value of the equity instruments at the
\n
grant date. The fair value excludes the effect of non-market-based vesting conditions. Details regarding the
\n
determination of the fair value of equity-settled share-based transactions are set out in note 22.
\n
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-
\n
line basis over the vesting period, based on the Group\u2019s estimate of equity instruments that will eventually vest. At
\n
each reporting date, the Group revises its estimate of the number of equity instruments expected to vest as a result
\n
of the effect of non-market-based vesting conditions. The impact of the revision of the original estimates, if any, is
\n
recognised in the consolidated income statement such that the cumulative expense reflects the revised estimate,
\n
with a corresponding adjustment to the share-based payment reserve.
\n
For cash settled share-based payments, a liability is recognised for the services acquired, measured initially at the fair
\n
value of the liability. At each reporting date until the liability is settled, and at the date of settlement, the fair value of
\n
the liability is re-measured, with any changes in fair value recognised in the consolidated income statement for the year.
\n
In assessing any modification of employee share-based payment transactions, the Group assesses if the change
\n
in the terms and conditions has an effect on the amount recognised which depends on whether the fair value of
\n
the new instruments is greater than the fair value of the original instruments. Modifications that increase the fair
\n
value of the grant result in recognition of the incremental fair value measured at the date of modification.
\n
Earnings Per Share
\n
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated
\n
by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares
\n
outstanding during the period. Diluted loss per share is computed by adjusting the weighted average number of
\n
ordinary shares in issue to assume conversion of all potential dilutive ordinary shares.
\n
Government Grants
\n
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions
\n
attaching to them and that the grants will be received. Government grants that are receivable as compensation for
\n
expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no
\n
future related costs are recognised in profit or loss in the period in which they become receivable. Amounts are
\n
recognised as income over the periods necessary to match them with the related costs and are deducted in
\nreporting the related expense.", "dimensions": { "concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13011": { "value": "1 Significant accounting policies
General Information
\n
Hostelworld Group plc, hereinafter \u201cthe Company\u201d, is a public limited Company incorporated in the United Kingdom
\n
on the 9 October 2015 under the Companies Act 2006 and is registered in England and Wales. The registered
\n
office of the Company is One Chamberlain Square, Birmingham, B3 3AX, United Kingdom.
\n
The Company and its subsidiaries (together \u201cthe Group\u201d) provide software and data processing services that facilitate
\n
hostel, B&B, hotel and other accommodation bookings worldwide.
\n
The Company\u2019s shares are quoted on Euronext Dublin and the London Stock Exchange.
\n
The Company and consolidated financial statements were approved and authorised for issue by the Board of
\n
Directors on 21 March 2023.
\n
Going concern
\n
The Directors, after making enquiries, have a reasonable expectation that the Group and Company has adequate
\n
resources to continue operating as a going concern for the foreseeable future.
\n
Since the beginning of the COVID-19 pandemic, the Group has maintained strong discipline over its cost base and
\n
cash reserves, with trading and cash forecasts being prepared on a weekly basis. Actions taken in the current period
\n
by the Directors to preserve the Group\u2019s cash position include the non-payment of cash dividends, the elimination
\n
of all non-essential operating costs including marketing, recruitment, travel and other variable overheads, the
\n
employment of a procurement manager to closely monitor and challenge contract spend in place, the non-payment
\n
of cash bonuses and the issuance of a restricted stock option in lieu of a cash bonus to employees, exiting our long
\n
term lease commitment facilities in favour of smaller office spaces across our locations, organisational redesigns
\n
and associated headcount reductions, and Government COVID-19 supports in Ireland which were availed of until
\n
February 2022, as well as warehousing of Irish employer and employee taxes incurred to March 2022.
\n
The 2023 budget has been prepared on a 12-month calendar basis, with the Board also approving a further four-year
\n
outlook, which has also been considered within going concern to capture a period of one year from date of signing.
\n
Revenue and marketing cost projections within Budget 2023 have been developed by triangulating three different
\n
models, where each model output has helped to validate the others.
\n
1.
Regional level forecasting reflecting an easing of the remaining travel restrictions in place. From 2020 through
\n
2022 we can evidence a correlated increase in revenue when borders reopen. We have assumed a full recovery
\n
to pre-pandemic booking levels in 2023 in our largest markets, with other markets taking longer. Forecasting
\n
at a regional level allows us to forecast specific bed prices, booking models, geographic mix and seasonality
\n
effectively in our modelling;
\n
2.
Channel mix between free and paid customers where assumptions are made based on volume of new
\n
customer acquisitions, cost of customer acquisitions and anticipated bookings based on marketing spend;
\n
3.
Modelling new and returning customers by using statistical models built using over 15 years of customer data.
\n
This rich customer cohort data set enables us to model recurring revenue streams, with a high degree of
\n
predictability. We layer in additional knowledge on new customer acquisition costs and expected economics
\n
between free and paid customers.
\n
Forecasting at this regional and channel level also allows us to adjust for bed price inflation and cost of living pressures.
\n
These risks are somewhat mitigated as our target 18-34
-year-old population typically have the means and the
\n
flexibility to travel, tending to view it as a \u2018rite of passage\u2019 rather than purely discretionary spend. Hostels are a
\n
cost-effective means to travel and our strategy focuses on customers connecting on a free platform that we provide.
We have assumed in Budget 2023 a modest contraction in our ABV year on year, provisioning for unit bed price
\n
deflation versus 2022 and increased volume from Asian markets, where bed prices are lower. We have modelled
\n
modest price inflation in our operating costs.
\n
We have not assumed any revenue from partnerships such as Roamies, Goki and Counter in our financial modelling.
\n
Climate related risks can impact our business as a customer may not want to travel, a hostel may be forced to close,
\n
or an area is not accessible. The budgeting process has incorporated all operating costs relating to our sustainability
\n
roadmap, as well as the cost of future emission reductions and offsets. Following an assessment completed by
\n
the Group, the budget does not contain any other liabilities, provisions or contingent liabilities relating to climate
\n
change. Revenue cashflows included in the budgeting process have captured for example the impacts of adverse
\n
weather conditions experienced by the Group in 2022 as we model based on historic run rates at a country and
\n
seasonal level.
\n
In addition to our base budget for 2023, we have prepared three additional scenarios that depict different recovery
\n
levels and trading volumes. An upside scenario tracks an increase in revenue and operating expenses. A downside
\n
scenario includes reduced revenue while maintaining the same level of operating spend. A worst-case includes
\n
further reduced revenue with a reduction in operating cost spend to mitigate. Under all scenarios, the Group has
\n
sufficient cash reserves available and remains compliant with financial covenants under its current term loan facility
\n
agreement with HPS Investment Partners LLC (or subsidiaries or affiliates thereof). The Group has also set out in its
\n
viability statement on pages 46 to 49 additional scenarios considered by the Group in its assessment of going concern.
\n
The directors took steps to ensure adequate liquidity is available to the Group for the duration of the pandemic and
\n
recovery period. On 19 February 2021 the Group signed a \u20ac30m five-year term loan facility with certain investment
\n
funds and accounts of HPS Investment Partners LLC (or subsidiaries or affiliates thereof). An amount of \u20ac28.8m was
\n
received on 23 February 2021. The key features of the facility are as follows:
\n
\u2022
The facility is single drawdown and bears interest at a margin of 9.0% per annum over EURIBOR (with a EURIBOR
\n
floor of 0.25% per annum).
\n
\u2022
Financial covenants comprise (1) adjusted net leverage (Hostelworld has to ensure that total net debt is no more
\n
than 3.0 x adjusted EBITDA from 31 December 2023 to 30 September 2024, and no more than 2.5 x adjusted
\n
EBITDA from 31 December 2024 onwards); and (2
) minimum liquidity (Hostelworld has to ensure that at close
\n
of business on the last business day of each month until it is testing the adjusted net leverage ratios there is
\n
free cash in members of the Group which have guaranteed repayment of the facility of at least \u20ac6.0 million).
\n
\u2022
Security on the facility includes the share capital of the Group, the bank accounts of the Group and the Group\u2019s
\n
intellectual property.
\n
We were in compliance with our minimum liquidity covenants at 31 December 2022.
\n
At this point in time, the consequences of the current unrest in Ukraine are uncertain. We have not experienced a
\n
significant impact to our revenue during 2022, and we continue to monitor any development in the conflict, and the
\n
impact to the Group closely. The Group has no operations in either Russia or Ukraine and total forecasted revenues
\n
for 2022 in these regions was less than 0.01% of the Group\u2019s net revenue. No revenue has been budgeted for these
\n
countries in 2023.
\n
Having considered the Group\u2019s Board approved 2023 budget, cash flow forecasts prepared for 12 months from 21 March
\n
2023, current and anticipated trading volumes, current and anticipated levels of cash and debt, together with mitigating
\n
actions available, the Directors are satisfied that the Group and Company has sufficient resources to continue in
\n
operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly,
\n
they continue to adopt the going concern basis in preparing the Group financial statements.
1. Significant accounting policies
continued
\n
Basis of Preparation
\n
The financial statements have been prepared in conformity with the requirements of the Companies Act 2006 and
\n
UK adopted International Financial Reporting Standards (IFRS) and IFRS adopted pursuant to Regulation (EC)
\n
No 1606/2002 as it applies in the European Union.
\n
The consolidated financial statements also comply with Article 4 of the EU IAS Regulation. References to IFRS
\n
hereafter refer to UK adopted IFRS and IFRS adopted by the EU.
\n
The consolidated financial statements have been prepared under the historical cost basis. The investment in
\n
associate is accounted for using the equity method.
\n
In the preparation of these consolidated financial statements the accounting policies set out below have been
\n
applied consistently by all Group companies. The consolidated financial statements are presented in euro which is
\n
the currency of the primary economic environment in which the Group operates.
\n
Re-presentation
\n
Certain comparative amounts in note 4 operating expenses and note 6 staff costs have been re-presented to exclude
\n
third party contractor costs, on a basis consistent with the current year. Comparative amounts in the Income
\n
Statement and note 4 operating expenses have been re-presented to disclose any reversals of impairment of trade
\n
receivables on the face of the Income Statement. For both items, there is no impact on net assets, or the Group\u2019s
\n
loss for the period ended 31 December 2021.
\n
In addition, upon review of the April 2022 IFRIC Agenda item \u201cDemand Deposits with Restrictions on Use arising
\n
from a Contract with a Third Party (IAS 7 Statement of Cash Flows) \u2013 Agenda Paper 3\u201d the Group has changed the
\n
presentation of cash and cash equivalents which are not available for use for the period ended 31 December 2021.
\n
The amount of \u20ac750k, which relates to a rental guarantee in place, has been classified in non-current assets as
\n
the guarantee was in place for a period of longer than 12 months after balance sheet date. This has no impact on
\n
net assets, net debt or the Group\u2019s loss for the period ended 31 December 2021.
\n
Basis of consolidation
\n
Subsidiaries
\n
The consolidated financial statements incorporate the financial statements of the Company and entities controlled
\n
by the Company (its subsidiaries) all of which prepare financial statements up to 31 December.
\n
Control is achieved when the Company has the power over the investee, is exposed, or has rights, to variable return
\n
from its investment with the investee and has the ability to use its power to affect its returns. The financial statements
\n
of subsidiaries are included in the consolidated financial statements from the date that control commences until the
\n
date that control ceases. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to
\n
transactions between the members of the Group are eliminated on consolidation. Unrealised losses are also eliminated,
\n
except where they provide evidence of impairment.
\n
Associates
\n
Associates are entities over which the Group has significant influence but not control, generally accompanying a
\n
shareholding of between 20% and 50% of the voting rights. Significant influence is the power to participate in the
\n
financial and operating policy decisions of the investee but is not control over those policies.
\n
Investments in associates are accounted for using the equity method of accounting and are initially recognised at
\n
cost. On acquisition of the investment in associate, any excess of the cost of the investment over the Group\u2019s share
\n
of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included
\n
within the carrying value of the investment.
The Group\u2019s share of its associates\u2019 post-acquisition profits or losses is recognised in \u2018Share of results of associate\u2019
\n
in the consolidated income statement, and its share of post-acquisition movements in reserves is recognised in the
\n
consolidated statement of changes in equity. The cumulative post-acquisition movements are adjusted against the
\n
carrying amount of the investment, less any impairment in value. Where indicators of impairment arise, the carrying
\n
amount of the associate is tested for impairment by comparing its recoverable amount with its carrying amount.
\n
The requirements of IAS 36 are applied to determine whether it is necessary to recognise any impairment loss with
\n
respect to the Group\u2019s investment in an associate. When necessary, the entire carrying amount of the investment
\n
(including goodwill) is tested for impairment in accordance with IAS 36 as a single asset by comparing its recoverable
\n
amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss
\n
recognised is not allocated to any asset, including goodwill that forms part of the carrying amount of the investment.
\n
Any reversal of that impairment loss is recognised in accordance with IAS 36 to the extent that the recoverable
\n
amount of the investment subsequently increases.
\n
Unrealised gains arising from transactions with associates are eliminated to the extent of the Group\u2019s interest in the
\n
entity. Unrealised losses are eliminated to the extent that they do not provide evidence of impairment. When the
\n
Group\u2019s share of losses in an associate equals or exceeds its interest in the associate, the Group does not recognise
\n
further losses unless the Group has incurred obligations or made payments on behalf of the associate. The accounting
\n
policies of associates are amended where necessary to ensure consistency of accounting treatment at Group level.
\n
When the Group ceases to have significant influence, any retained interest in the entity is re-measured to its fair value
\n
at the date when significant influence is lost with the change in carrying amount recognised in the consolidated
\n
income statement. The Group also reclassifies any movements previously recognised in other comprehensive
\n
income to the consolidated income statement.
\n
Business combinations
\n
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a
\n
business combination is measured at fair value, which is calculated as the sum of the acquisition date fair values
\n
of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and
\n
the equity interests issued by the Group in exchange for control of the acquiree.
\n
Acquisition related costs are recognised in the consolidated income statement as incurred.
\n
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value
\n
at the acquisition date, except that:
\n
\u2022
Deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised
\n
and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;
\n
\u2022
Liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
\n
payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree
\n
are measured in accordance with IFRS 2 Share-based Payment at the acquisition date; and
\n
\u2022
Assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held
\n
for Sale and Discontinued Operations are measured in accordance with that standard.
\n
The fair value of the assets and liabilities are based on valuations using assumptions deemed by management to
\n
be appropriate. Professional valuers are engaged when it is deemed appropriate to do so.
\n
Goodwill represents the excess of the aggregate of the consideration transferred and the amount of any non-
\n
controlling interest in the acquired entity over the net identifiable assets acquired.
1. Significant accounting policies
continued
\n
Non-controlling interests
\n
Non-controlling interests represent the portion of the equity of a subsidiary not attributable either directly or
\n
indirectly to the Group and are presented separately in the consolidated income statement and within equity in the
\n
consolidated statement of financial position, distinguished from shareholders\u2019 equity attributable to the owners of
\n
the parent Company.
\n
New standards, amendments and interpretations issued and adopted by the Group in 2022:
\n
The following changes to IFRS became effective for the Group during the year but did not result in material changes
\n
to the Group\u2019s consolidated financial statements:
\n
\u2022
Reference to the Conceptual Framework (Amendments to IFRS 3)
\n
\u2022
Property, Plant and Equipment \u2014 Proceeds before Intended Use (Amendments to IAS 16)
\n
\u2022
Onerous Contracts \u2014 Cost of Fulfilling a Contract (Amendments to IAS 37)
\n
\u2022
Annual Improvements to IFRS Standards 2018-2020
\n
New and amended standards and interpretations not yet mandatorily effective
\n
The Group has not applied certain new standards, amendments and interpretations to existing standards which are
\n
not yet mandatorily effective and have not yet been endorsed by the UK or by the EU, in some instances:
\n
\u2022
Leases COVID-19 \u2013 Related Rent Concessions beyond 30 June 2021 (Amendments to IFRS 16)
\n
\u2022
Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)
\n
*
\n
\u2022
Classification of Liabilities as Current or Non-Current \u2013 Deferral of Effective Date (Amendments to IAS 1)
\n
*
\n
\u2022
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
\n
\u2022
Definition of Accounting Estimates (Amendments to IAS 8)
\n
\u2022
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)
\n
\u2022
Initial Application of IFRS 17 and IFRS 9 \u2013 Comparative Information (Amendment to IFRS 17)
\n
\u2022
Insurance Contracts \u2013 Amendments to IFRS 17
\n
\u2022
Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4)
\n
\u2022
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
\n
\u2022
Non-current Liabilities with Covenants (Amendments to IAS 1)
\n
*
\n
Not yet endorsed by the EU and/or UK
\n
Revenue recognition
\n
The Group generates substantially all of its revenues from the technology and data processing fees and service fees
\n
that it charges to accommodation providers and the transaction service fees it charges to consumers. The Group
\n
also generates revenues from technology and data processing fees that it charges to providers of other travel
\n
products and associated transaction service fees, from cancellation protection fees, payment protection fees and
\n
from advertising services.
\n
Revenue is recognised at the time the reservation is made in respect of non-refundable commission on the basis
\n
that the Group has met its performance obligations having provided the technology and data processing service at
\n
the time the booking is made. In respect of the free cancellation product, which offers the traveller the opportunity
\n
to make a booking on a free cancellation basis and to receive a refund of their deposit in certain circumstances,
\n
such related revenue is not recognised until the last cancellation date has passed as one party can withdraw from
\n
the contract until such a date has passed, at which point the Group will have met its performance obligation.
Where the Group provides an ancillary service to allow a flexible booking option which allows a booking to be
\n
cancelled for no charge or a new booking to be made, such revenue is deferred, until such time as the related
\n
check-in date has passed or for a six-month period from the date of cancellation, at which time the credit expires.
\n
Where credits are granted to customers for utilisation on future bookings, a provision is recorded against revenue
\n
based on the probability that a credit offering will be used by a customer.
\n
Ancillary advertising and property management technology revenues (Counter) are recognised over the period when
\n
the service is performed as the Group\u2019s performance obligation is met over time. Royalties and commission amounts
\n
earned from the \u201cRoamies\u201d revenue streams are recognised on the trip\u2019s start date, when the Group\u2019s performance
\n
obligations are met. Revenue is measured at the fair value of the consideration received or receivable.
\n
Revenue is stated net of rebates, sales taxes and value added taxes.
\n
Leases
\n
The Group leases properties across a number of locations. Rental contracts are typically made for fixed periods
\n
but may have an option to extend. Lease terms are negotiated on an individual basis and contain a wide range of
\n
different terms and conditions.
\n
At inception of a contract, the Group assesses whether a contract is or contains a lease, at inception of the contract.
\n
For contracts where the Group is a lessee, a right-of-use asset is recognised, representing the Group\u2019s right to use
\n
the underlying asset and a lease liability is also recognised for the Group\u2019s obligation to make lease payments during
\n
the lease term. The lease term of each contract is determined as the non-cancellable period of the lease, together
\n
with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods
\n
covered by an option to terminate the lease (break option), if it is reasonably certain not to exercise that option.
\n
For short term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets
\n
(defined as leases with an underlying asset value of \u20ac10,000 or less), the Group recognises the lease payments as
\n
an operating expense on a straight-line basis over the term of the lease.
\n
The right-of-use asset is initially measured at cost and subsequently valued at cost less accumulated depreciation
\n
and impairment losses. It is adjusted where a lease modification results in a remeasurement of the lease liability.
\n
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset.
\n
The depreciation starts at the commencement date of the lease.
\n
Whenever the Group incurs an obligation to restore the underlying asset to the condition required by the terms and
\n
conditions of the lease, a provision is recognised and measured under IAS 37. To the extent that the costs relate to
\n
a right-of-use asset, the costs are included in the related right-of-use asset.
\n
The carrying value of these assets are reviewed at the end of each reporting period to determine whether there is
\n
any indication that the assets have suffered an impairment loss. The Group applies IAS 36 to determine whether a
\n
right-of-use asset is impaired and accounts for any identified impairment loss as described in the \u2018Property, Plant
\n
and Equipment\u2019 policy.
\n
Lease liabilities are measured at the present value of the future lease payments. The lease payments are discounted
\n
using the implicit interest rate in the lease or where this cannot readily be determined the Group use the Group\u2019s
\n
incremental borrowing rate. The incremental borrowing rate depends on the term, currency and start date of the
\n
lease and is determined based on a series of inputs including: the risk-free rate based on government bond rates;
\n
a country-specific risk adjustment and a credit risk adjustment based on bond yields. Subsequently the lease
\n
liability is increased to reflect interest on the lease liability and reduced for payments made. The lease liability is
\n
remeasured for lease modifications or reassessments.
1. Significant accounting policies
continued
\n
Lease payments included in the measurement of the lease liability comprise: (i) Fixed lease payments less any lease
\n
incentives receivable; (ii) Variable lease payments that depend on an index or rate, initially measured using the index
\n
or rate at the commencement date; (iii) The amount expected to be payable by the lessee under residual value
\n
guarantees; (iv) The exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
\n
and (v) Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate
\n
the lease.
\n
The lease liability is presented as a separate line in the consolidated statement of financial position. The lease
\n
liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using
\n
the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
\n
The Group re-measures the lease liability (and makes a corresponding adjustment to the related right-of-use asset)
\n
whenever: (i) The lease term has changed or there is a significant event or change in circumstances resulting in
\n
a change in the assessment of exercise of a purchase option, in which case the lease liability is re-measured by
\n
discounting the revised lease payments using a revised discount rate. (ii) The lease payments change due to changes
\n
in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease
\n
liability is remeasured by discounting the revised lease payments using an unchanged discount rate (iii) A lease
\n
contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease
\n
liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments
\n
using a revised discount rate at the effective date of the modification.
\n
Cash paid on the interest portion of a lease liability is included as part of operating activities in the consolidated cash
\n
flow statement and cash payments for the principal portion of a lease liability are included as part of financing activities.
\n
Payments in relation to short term leases and leases of low value assets that do not meet the criteria to be capitalised
\n
under IFRS 16 are included as part of operating activities in the consolidated cash flow statement.
\n
Exceptional items
\n
Exceptional items by their nature and size can make interpretation of the underlying trends in the business more
\n
difficult. Such items may include restructuring, material merger and acquisition costs, profit or loss on disposal or
\n
termination of operations, litigation settlements, legislative changes, material acquisition integration costs and
\n
profit or loss on disposal of investments. Judgement is used by the Group in assessing the particular items which
\n
by virtue of their scale and nature should be disclosed as exceptional items. Where an item that has been classified
\n
as exceptional spans more than one reporting period such as a multi-year restructuring programme, it will also be
\n
presented as exceptional in the following period for consistency of presentation.
\n
Taxation
\n
The tax expense represents the sum of the tax currently payable and deferred tax.
\n
Current tax
\n
The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported
\n
in the consolidated income statement because it excludes items of income or expense that are taxable or deductible
\n
in other years and it further excludes items that are never taxable or deductible. The Group\u2019s liability for current tax
\n
is calculated using tax rates that have been enacted or substantively enacted by the reporting date, and any
\n
adjustment to tax payable in respect of previous years.
\n
A provision is recognised for those matters for which the tax determination is uncertain, but it is considered probable
\n
that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of
\n
the amount expected to become payable. The assessment is based on the judgement of tax professionals within the
\n
Company supported by previous experience in respect of such activities and in certain cases based on specialist
\n
independent tax advice.
Deferred tax
\n
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets
\n
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit
\n
and is accounted for using the liability method. Deferred tax liabilities are generally recognised for all taxable
\n
temporary differences and deferred tax assets are recognised for unused tax losses, unused tax credits and
\n
deductible temporary differences to the extent that it is probable future taxable profits will be available against
\n
which the temporary difference can be utilised.
\n
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and
\n
associates, except where the Group is able to control the reversal of the temporary difference and it is probable that
\n
the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible
\n
temporary differences associated with such investments and interests are only recognised to the extent that it is
\n
probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences
\n
and they are expected to reverse in the foreseeable future.
\n
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is
\n
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
\n
Such reductions are reversed when the probability of future taxable profits improves.
\n
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
\n
against current liabilities and when they relate to income taxes levied by the same taxation authority and the Group
\n
intends to settle its current tax assets and liabilities on a net basis.
\n
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or
\n
the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the balance
\n
sheet date. Deferred tax is charged or credited in the consolidated income statement, except when it relates to
\n
items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
\n
Foreign currencies
\n
The individual financial statements of each Group Company are presented in the currency of the primary economic
\n
environment in which it operates (its functional currency). For the purpose of the consolidated financial statements,
\n
the results and financial position of each Group Company are expressed in euro, which is the functional currency
\n
of the parent Company and the presentation currency for the consolidated financial statements.
\n
In preparing the financial statements of the individual companies, transactions in currencies other than the entity\u2019s
\n
functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions.
\n
At each reporting date, monetary assets and liabilities denominated in foreign currencies are retranslated at the
\n
rates prevailing on the reporting date.
\n
Non-monetary items (including deferred revenue) carried at fair value that are denominated in foreign currencies
\n
are translated at the rates prevailing at the date when the fair value was determined in accordance with IFRIC 22.
\n
Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
\n
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are
\n
included in the consolidated income statement and consolidated statement of comprehensive income for the period.
\n
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group\u2019s operations
\n
are translated at exchange rates prevailing on the reporting date. Income and expense items are translated at the
\n
average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which
\n
case the exchange rates at the date of transactions are used. Exchange differences arising, if any, are classified
\n
as equity and transferred to the Group\u2019s foreign currency translation reserve.
1. Significant accounting policies
continued
\n
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities
\n
of the foreign entity and translated at the closing rate. Exchange differences arising are recognised in other
\n
comprehensive income.
\n
Retirement benefits costs
\n
The Group operates a defined contribution pension scheme. Contributions made in respect of employees\u2019 pension
\n
schemes are charged through the consolidated income statement in the period they become payable. The Group
\n
pays contributions to privately administered pension insurance plans. The Group has no further payment obligations
\n
once the contributions have been paid. The contributions are recognised as employee benefit expense when they
\n
are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the
\n
future payments is available.
\n
Property, plant and equipment
\n
Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
\n
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, using the straight-line
\n
method. The estimated useful lives, residual values and depreciation method are reviewed at each year end, with
\n
the effect of any changes in estimate accounted for on a prospective basis.
\n
Right-of-use assets are depreciated over the shorter period of the lease term and the useful life of the underlying asset.
\n
Depreciation is provided on the following basis:
\n
Leasehold property improvements
5-10 years straight line
\n
Computer equipment
3-5 years straight line
\n
Fixtures and equipment
6-7 years straight line
\n
Leasehold improvements are improvements made to buildings leased by the Group when it has the right to use these
\n
leasehold improvements over the term of the lease. The improvements will revert to the lessor at the expiration of
\n
the lease.
\n
The cost of a leasehold improvement is depreciated over the shorter of:
\n
1.
The remaining lease term, or
\n
2.
The estimated useful life of the improvement.
\n
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
\n
expected to arise from the continued use of the asset. The gain or loss arising on the disposal of an asset is
\n
recognised in the consolidated income statement when the asset is derecognised.
\n
In accordance with IAS 36 \u2018Impairment of Assets\u2019
, the carrying amounts of items of property, plant and equipment
\n
are reviewed at each reporting date to determine whether there is any indication of impairment. An impairment loss
\n
is recognised whenever the carrying amount of an asset exceeds its recoverable amount.
\n
Impairment losses are recognised in the consolidated income statement. Following the recognition of an impairment
\n
loss, the depreciation charge applicable to the asset is adjusted prospectively in order to systematically allocate
\n
the revised carrying amount over the remaining useful life.
Intangible assets
\n
Goodwill
\n
Goodwill is initially measured as the excess of the cost of the business combination over the Group\u2019s interest in the
\n
net fair value of the identifiable assets, liabilities and contingent liabilities of the acquired subsidiary or associate.
\n
Identifiable intangible assets, meeting either the contractual-legal or separability criterion are recognised separately
\n
from goodwill.
\n
Goodwill on acquisition of subsidiaries is included within intangible assets. Goodwill associated with the acquisition
\n
of associates is included within the interest in associates under the equity method of accounting.
\n
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.
\n
Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicated
\n
that the carrying value may be impaired.
\n
For the purposes of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (CGU)
\n
that is expected to benefit from the synergies of the combination.
\n
If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated
\n
first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit on a
\n
pro-rata basis based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised
\n
directly in profit or loss in the consolidated income statement. An impairment loss recognised for goodwill is not
\n
reversed in subsequent periods.
\n
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination
\n
of the gain or loss on disposal.
\n
Other intangible assets
\n
The Group has four classes of other intangible assets: domain names, technology assets, affiliate contracts and
\n
development costs.
\n
Other intangible assets are capitalised at cost and amortised to operating expenses before impairment in the
\n
consolidated income statement on a straight-line basis over their estimated useful lives:
\n
Domain names:
5-20 years
\n
Technology assets:
4 years
\n
Affiliate contracts:
5 years
\n
Capitalised development costs:
2-5 years
\n
Domain names relate to certain domain names, trademarks and technology assets which are carried at cost less
\n
accumulated amortisation and are amortised over their useful life. Technology assets here include the website, App
\n
interfaces, application programming interfaces (APIs) that allow applications to interface and databases which
\n
collectively form the underlying integrated Hostelworld Platform.
\n
Affiliate contracts refers to contracts established with certain affiliate partners whose function is to promote the
\n
website and App. These contracts were identified as a separately identifiable asset in line with IAS 38 \u2018Intangible Assets\u2019
\n
which allow affiliates to get real time access to property, pricing and availability function through affiliate APIs.
\n
Technology assets relates to certain computer software applications stated at cost less accumulated amortisation.
\n
Costs incurred on the acquisition of computer software are capitalised, as are costs directly associated with developing
\n
computer software programmes for internal use, if they meet the recognition criteria of IAS 38 \u2018Intangible Assets\u2019
.
1. Significant accounting policies
continued
\n
Development expenditure in relation to internally-generated intangible assets is capitalised when all of the following
\n
have been demonstrated; the technical feasibility of completing the intangible asset so that it will be available for use;
\n
the intention to complete the project to which the intangible asset relates and to use it or sell it; the ability to use
\n
or sell the intangible asset, how the intangible asset will generate probable future economic benefits; the availability
\n
of adequate technical, financial and other resources to complete the development and to use the intangible asset;
\n
and the ability to measure reliably the expenditure attributable to the intangible asset during its development.
\n
Development activities involve a plan or design for the production of new or substantially improved products or
\n
processes. Directly attributable costs that are capitalised as part of the software product, website or system include
\n
employee costs. Other development expenditures that do not meet these criteria as well as ongoing maintenance
\n
are recognised as an expense as incurred.
\n
An intangible asset is derecognised on disposal or when no future economic benefits are expected to arise from
\n
the continued use or disposal of the asset. The gain or loss arising on the disposal of an asset is recognised in the
\n
consolidated income statement when the asset is derecognised.
\n
The residual value associated with all intangible assets is deemed to be \u20acnil.
\n
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
\n
Impairment of tangible and intangible assets other than goodwill
\n
At the end of each reporting period, the Directors review the carrying amounts of the Group\u2019s tangible and intangible
\n
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such
\n
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment
\n
loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Directors estimate
\n
the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent
\n
basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or
\n
otherwise they are allocated to the smallest Group of cash-generating units for which a reasonable and consistent
\n
allocation basis can be identified.
\n
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment
\n
at least annually, and whenever there is an indication that the asset may be impaired.
\n
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the
\n
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
\n
market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an
\n
asset (or a cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset
\n
(or the cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately
\n
in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is
\n
treated as a revaluation decrease.
\n
Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is
\n
increased to the revised estimate of its recoverable amount. The increased carrying amount cannot exceed the
\n
carrying amount that would have been determined had no impairment loss been recognised for the asset (or the
\n
cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss,
\n
unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is
\n
treated as a revaluation increase.
Financial instruments
\n
Financial assets and financial liabilities are recognised in the Group\u2019s consolidated statement of financial position
\n
when the Group becomes a party to the contractual provisions of the instrument.
\n
Financial assets and liabilities are initially measured at fair value plus transaction costs, except for those classified
\n
as fair value through profit or loss, which are initially measured at fair value. The fair value of financial assets and
\n
liabilities denominated in a foreign currency is determined in that foreign currency and translated at the spot rate
\n
at the end of the reporting period.
\n
(a) Classification of financial assets
\n
Trade and other receivables
\n
Trade and other receivables are stated initially at their transaction price and subsequently at amortised cost, less
\n
any expected credit loss provision. The Group applies the simplified approach to measuring expected credit losses
\n
which uses a lifetime expected credit loss allowance for all trade receivables.
\n
(b) Expected credit loss of financial assets
\n
The Group always recognises lifetime expected credit losses (ECLs) for trade receivables estimated using a provision
\n
matrix based on the Group\u2019s historical credit loss experience, adjusted for factors that are specific to the debtors,
\n
general economic conditions and an assessment of both the current as well as the forecast direction of conditions
\n
at the reporting date, including time value of money where appropriate.
\n
Lifetime ECLs represents the expected credit losses that will result from all possible default events over the expected
\n
life of a financial instrument. ECLs are reported in the consolidated income statement. An event of default occurs
\n
where there is failure by a debtor to fulfil an obligation and there is no likely recourse available. For example, if a
\n
hostel has gone out of business.
\n
(c) Classification of financial liabilities
\n
Trade and other payables
\n
Trade and other payables are initially recorded at fair value, which is usually the original invoiced amount, and
\n
subsequently carried at amortised cost. Liabilities are derecognised when the obligation under the liability is
\n
discharged, cancelled or expires.
\n
Loans and borrowings
\n
All loans and borrowings are initially recognised at fair value of the proceeds received less any directly attributable
\n
transaction costs. Transaction costs include fees and commission paid to agents, advisers brokers and dealers. After
\n
initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
\n
effective interest method being the amount at which the financial liability is measured at initial recognition minus any
\n
principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference
\n
between that initial amount and the maturity amount. Borrowings are de-recognised when the Group\u2019s obligations
\n
specified in the contracts expire, are discharged or cancelled. Borrowings are classified as current liabilities unless
\n
the Group has an unconditional right to defer settlement of the liability for at least 12 months after the financial
\n
position date.
\n
Other financial liabilities
\n
Financial liabilities are recognised initially at fair value and are subsequently stated at amortised cost using the
\n
effective interest method. The effective interest method is a method for calculating the amortised cost of a financial
\n
liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
\n
discounts estimated future cash payments through the expected life of the financial liability to the amortised cost
\n
of a financial liability.
\n
Financial liabilities are classified as current liabilities unless the Group has an unconditional right to defer settlement
\n
of the liability for at least 12 months after the reporting date. The Directors determine the classification of the Group\u2019s
\n
financial liabilities at initial recognition.
1. Significant accounting policies
continued
\n
(d) Cash and cash equivalents
\n
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly
\n
liquid investments with original maturities of three months or less. Restricted cash and cash equivalent balances
\n
are those which meet the definition of cash and cash equivalents but are not available for use by the Group.
\n
Recognition of warrants
\n
Warrant reserve is recorded at the fair value of warrants issued. Warrants have been recognised as equity instruments
\n
as each warrant issued entitles the holder to a fixed number of ordinary shares in exchange for a fixed exchange
\n
price of \u20ac0.01 per ordinary equity share.
\n
Dividends
\n
Final dividends are recorded in the Group\u2019s financial statements in the period in which they are approved by the
\n
Company\u2019s shareholders. Interim dividends are recorded in the period in which they are paid.
\n
Share based payments
\n
Equity settled share-based payments to employees are measured at the fair value of the equity instruments at the
\n
grant date. The fair value excludes the effect of non-market-based vesting conditions. Details regarding the
\n
determination of the fair value of equity-settled share-based transactions are set out in note 22.
\n
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-
\n
line basis over the vesting period, based on the Group\u2019s estimate of equity instruments that will eventually vest. At
\n
each reporting date, the Group revises its estimate of the number of equity instruments expected to vest as a result
\n
of the effect of non-market-based vesting conditions. The impact of the revision of the original estimates, if any, is
\n
recognised in the consolidated income statement such that the cumulative expense reflects the revised estimate,
\n
with a corresponding adjustment to the share-based payment reserve.
\n
For cash settled share-based payments, a liability is recognised for the services acquired, measured initially at the fair
\n
value of the liability. At each reporting date until the liability is settled, and at the date of settlement, the fair value of
\n
the liability is re-measured, with any changes in fair value recognised in the consolidated income statement for the year.
\n
In assessing any modification of employee share-based payment transactions, the Group assesses if the change
\n
in the terms and conditions has an effect on the amount recognised which depends on whether the fair value of
\n
the new instruments is greater than the fair value of the original instruments. Modifications that increase the fair
\n
value of the grant result in recognition of the incremental fair value measured at the date of modification.
\n
Earnings Per Share
\n
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated
\n
by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares
\n
outstanding during the period. Diluted loss per share is computed by adjusting the weighted average number of
\n
ordinary shares in issue to assume conversion of all potential dilutive ordinary shares.
\n
Government Grants
\n
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions
\n
attaching to them and that the grants will be received. Government grants that are receivable as compensation for
\n
expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no
\n
future related costs are recognised in profit or loss in the period in which they become receivable. Amounts are
\n
recognised as income over the periods necessary to match them with the related costs and are deducted in
\n
reporting the related expense.
2. Critical accounting judgements and key sources of estimation uncertainty
\n
In the application of the Group\u2019s accounting policies, the Directors are required to make judgements (other than those
\n
involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions
\n
about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates
\n
and associated assumptions are based on historical experience and other factors considered relevant. Actual results
\n
may differ from these estimates.
\n
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
\n
recognised in the year in which the estimate is revised if the revision affects only that year, or in the year of the
\n
revision and future years if the revision affects both current and future years.
\n
(a) Critical judgements in applying the Group\u2019s accounting policies:
\n
The following are the critical judgements, apart from those involving estimations (which are presented separately
\n
below), that the directors have made in the process of applying the Group\u2019s accounting policies and that have the
\n
most significant effect on the amounts recognised in financial statements.
\n
Capitalisation of development costs
\n
Development costs are capitalised when the criteria set out in paragraph 57 of IAS 38 Intangible assets have been
\n
demonstrated as disclosed in our accounting policy disclosed on page 182. Total additions amounted to \u20ac4,511k
\n
(2021: \u20ac4,397k) and carrying value at the balance sheet date totalled \u20ac6,800k
(2021: \u20ac5,073k).
\n
Determining the amount to be capitalised requires management to make judgements about each asset to ensure
\n
that they meet the requirements. The most critical judgement relates to the projects ability to generate future
\n
economic benefits. Business cases have been prepared in line with our Board approved 2023 budget and five-year
\n
outlook. The main projects capitalised in the current year relate to the \u2018Social\u2019 strategy and platform modernisation
\n
which form both form a key part of the Group\u2019s growth strategy. Should trading deteriorate to COVID-19 volumes it
\n
is reasonably possible within the next financial year that development costs may require a material adjustment to
\n
their carrying amount.
\n
Accounting for exceptional items
\n
Exceptional items by their nature and size can make interpretation of the underlying trends in the business more
\n
difficult. Judgement is used in assessing the particular items which by virtue of their scale and nature should be
\n
disclosed as exceptional items. Circumstances that the Group believe would give rise to exceptional items for
\n
separate disclosure are outlined in the exceptional accounting policy on page 178. Current year exceptional costs
\n
amounted to \u20ac835k (2021: \u20ac588k).
\n
(b) Key sources of estimation uncertainty:
\n
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period
\n
that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
\n
within the next financial year, are discussed below.
\n
Deferred tax asset recognition and recoverability of deferred tax assets
\n
Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available in future
\n
periods. Recognition of deferred tax assets is reliant on detailed forecast information regarding the future performance
\n
of business. The extent to which it is probable that taxable profits will be available in future periods is an estimate
\n
assessed based on the budgets and forecasts prepared by the Group. At 31 December 2022 the carrying value of
\n
deferred tax assets amounted to \u20ac9,174k (2021: \u20ac8,352k).
2. Critical accounting judgements and key sources of estimation uncertainty
continued
\n
At 31 December 2022 the directors performed a review of the recoverability of the asset based on the Board approved
\n
2023 budget and further four-year outlook which covers a period to 31 December 2027. The Group does not have
\n
any binding fixed term contracts in place which guarantee profitability. The Group has made a loss in 2021 and 2022
\n
as a direct impact of COVID-19 and are projected to do so in 2023 as the Group continues to recover as final borders
\n
reopen in Asia. The budget and further four-year outlook includes an assumption of returning to profit in 2024.
\n
The recognition and recoverability of the deferred tax asset is based on the Group\u2019s ability to generate sufficient
\n
taxable profits in future financial years. The board approved budget for 2021 set out a loss before tax of \u20ac22,525k
\n
for 2022 compared to an actual loss of \u20ac17,912k as set out in the Income Statement. Improved performance was
\n
driven by accelerated recovery levels by market and the success of our social strategy which resulted in a higher
\n
volume of bookings from low cost channels.
\n
As part of our recoverability analysis, the Group has performed a sensitivity analysis on taxable profits growth over the
\n
next five years. The Group\u2019s forecasted taxable profits would have to decline by over 10% over the next five years
\n
before there is a risk that the deferred tax asset is not fully recovered in that period.
\n
Carrying value of goodwill and intangible assets
\n
The Directors assess annually whether goodwill has suffered any impairment, in accordance with the relevant
\n
accounting policy and intangible assets are assessed for possible impairment where indicators of impairment exist.
\n
The recoverable amounts of cash-generating units (CGUs) are determined based on the higher of fair value less
\n
costs of disposal or value in use calculations. The carrying amount of goodwill at 31 December 2022 amounted to
\n
\u20ac17,848k (2021: \u20ac17,848k) and the carrying amount of domain names amounted to \u20ac48,668k (2021: \u20ac56,410k).
\n
Based on work performed and the headroom identified in the models no impairment was necessary in 2022 for
\n
goodwill or domain names.
\n
Management estimation is required in forecasting future cash flows of cash-generating units including incorporating
\n
the impact of recovery of the business from COVID-19, the discount rates applied to these cashflows, the expected
\n
long-term growth rate of the applicable business and terminal values. The area of estimation of most risk relates to
\n
certainty of delivering the growth rates forecasted from the recovery of the business and from our strategy.
\n
Further details on the assumptions used, the impact of climate change and sensitivity analysis are set out in note 10.
\n
3. Revenue & segmental analysis
\n
The Group is managed as a single business unit which provides software and data processing services that facilitate
\n
hostel, hotel and other accommodation worldwide, including ancillary on-line advertising revenue.
\n
The Directors determine, and present operating segments based on the information that is provided internally to the
\n
Chief Executive Officer, who is the Company\u2019s Chief Operating Decision Maker (CODM). When making resource
\n
allocation decisions, the CODM evaluates booking numbers and average booking value. The objective in making
\n
resource allocation decisions is to maximise consolidated financial results.
\n
The CODM assesses the performance of the business based on the consolidated adjusted loss after tax of the Group
\n
for the year. This measure excludes the effects of certain income and expense items, which are unusual by virtue of
\n
their size and incidence, in the context of the Group\u2019s ongoing core operations, such as the impairment of intangible
\n
assets and one-off items of expenditure.
\n
All revenue is derived wholly from external customers and is generated from a large number of customers, none of
\n
whom is individually significant.
\n
The Group\u2019s major revenue-generating asset class comprises its software and data processing services and is directly
\n
attributable to its reportable segment operations. In addition, as the Group is managed as a single business unit,
\n
all other assets and liabilities have been allocated to the Group\u2019s single reportable segment. There have been no
\n
changes to the basis of segmentation or the measurement basis for the segment profit or loss.
Revenue split by country, is dependent on the location of the hostel or property. No single country, year on year,
\n
contributes 10% or more of total revenue. Our top five countries year on year account for 38% of overall revenue
\n
(2021: 43%) relating to USA and key European destinations. Revenue split by continent is presented as follows
:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Europe
45,936
10,713
\n
Americas
15,719
5,213
\n
Asia, Africa and Oceania
8,035
975
\n
Total revenue
69,690
16,901
\n
Revenue arising within Ireland, the country of domicile, amounted to \u20ac1,795k (2021: \u20ac492k).
\n
Disaggregation of revenue is presented as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Technology and data processing fees
69,363
16,849
\n
Advertising revenue and ancillary services
327
52
\n
Total revenue
69,690
16,901
\n
In the year ended 31 December 2022, the Group generated 100% (2021: 100%) of its revenues from the technology
\n
and data processing fees that it charged to accommodation providers.
\n
As at 31 December 2022, \u20ac3,005k of revenue relating to free cancellation bookings has been deferred (2021: \u20ac1,020k).
\n
Revenue is recognised at the time the reservation is made in respect of non-refundable commission on the basis that
\n
the Group has met its performance obligations at the time the booking is made. In respect of the free cancellation
\n
product, which offers the traveller the opportunity to make a booking on a free cancellation basis and to receive a
\n
refund of their deposit in certain circumstances, such related revenue is not recognised until the last cancellation
\n
date has passed as one party can withdraw from the contract until such a date has passed. Deferred revenue is
\n
expected to be recognised within twelve months of initial recognition.
\n
Advertising revenue and revenue generated from other services are recognised over the period when the service
\n
is performed.
\n
The Group\u2019s non-current assets are located in Ireland, Australia, the United Kingdom, Portugal, and China. Non-
\n
current assets are disaggregated as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Total non-current assets
84,997
89,221
\n
Analysed as:
\n
Ireland
83,825
87,799
\n
Australia
980
1,186
\n
United Kingdom
20
32
\n
Portugal
156
165
\n
China
16
39
4. Operating expenses excluding impairment
\n
Loss for the year has been arrived at after charging/(crediting) the following operating costs:
\n
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Marketing expenses
42,233
13,792
\n
Staff costs
18,078
15,101
\n
*
\n
Credit card processing fees
2,047
573
\n
Loss on disposal plant, property and equipment
1
492
\n
Net profit on disposal of leases
14
(1)
(793)
\n
Exceptional items
5
835
588
\n
FX loss
714
419
\n
Other administrative costs
7,609
6,932
\n
*
\n
Total administrative expenses
71,516
37,104
\n
Depreciation of tangible fixed assets
11
968
1,519
\n
Amortisation of intangible fixed assets
10
10,629
10,892
\n
Total operating expenses excluding impairment
83,113
49,515
\n
*
\n
An amount of \u20ac445k has been re-presented in the prior year between staff costs and other administrative costs relating to third party contractors
\n
engaged by the Group to assist on development labour projects for a period of time.
\n
Included in staff costs are government assistance amounts totalling \u20ac376k (2021: \u20ac1,771k) for a subsidy received
\n
under the Employment Wage Subsidy Scheme in Ireland. Prior year amounts also include \u20ac15.9k received for
\n
furloughed employees under the Coronavirus Job Retention Scheme in the UK.
\n
Included within marketing expenses are direct marketing costs of \u20ac41,393k (2021: \u20ac12,763k). Other administration
\n
costs include rent and rates, legal and professional, training and recruitment, website maintenance and security,
\n
ecommerce and data analytics.
\n
Included within operating expenses is a total credit of \u20ac184k (2021: \u20acnil) in relation to an R&D tax credit claimed in
\n
respect of projects completed in 2021.
\n
Auditor\u2019s remuneration
\n
During the year, the Group obtained the following services from its auditor, Deloitte Ireland LLP:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Fees payable for the statutory audit of the Company
\n
and consolidated financial statements
48
42
\n
Fees payable for other services:
\n
\u2013 statutory audit of subsidiary undertakings
120
96
\n
\u2013 tax advisory services
\u2013
\u2013
\n
\u2013 audit related assurance services
34
8
\n
\u2013 corporate finance services
\u2013
\u2013
\n
\u2013 other non\u2013audit services
13
13
\n
Total
215
159
5. Exceptional items
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Merger and acquisition costs
\u2013
(127)
\n
Litigation settlements
519
\u2013
\n
Restructuring costs
316
715
\n
Total
835
588
\n
In the current year, exceptional items relate to a final settlement amount paid to the founder of Counter App Limited,
\n
on their exit from the company and associated legal costs. Current and prior year restructuring costs primarily relate
\n
to staff costs incurred as part of a restructure to a simpler and more efficient growth orientated organisational
\n
structure. The new structure organises the Group\u2019s marketing, product, development and analytics employees into
\n
autonomous growth teams. The restructure concluded in 2022. Prior year merger and acquisition credit of \u20ac127k
\n
relates to a release of costs previously accrued for due to a revision of estimate for professional fees incurred on
\n
related service.
\n
6. Staff costs
\n
The average monthly number of people employed (including Executive Directors) was as follows:
\n
2022
2021
\n
Average number of persons employed:
\n
Administration and sales
130
110
\n
Development and information technology
109
116
\n
Total
239
226
\n
The aggregate remuneration costs of these employees is analysed as follows:
\n
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Staff costs comprise:
\n
Wages and salaries
14,638
12,378
\n
Termination benefits \u2013 exceptional items
218
672
\n
Social security costs
1,987
1,367
\n
Pensions costs
432
460
\n
Other benefits
687
442
\n
Share option charge
22
2,396
2,162
\n
20,358
17,481
\n
Capitalised development labour
10
(2,062)
(1,708)
\n
Total
18,296
15,773
\n
Termination benefits above are also disclosed within note 5 exceptional items and relate to termination payments
\n
made as part of a group restructure. Capitalised development labour includes \u20ac2,062k (2021: \u20ac1,708k) of employee
\n
costs capitalised.
7. Finance costs
\n
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Interest on lease liabilities
14
31
102
\n
Finance costs \u2013 HPS facility
20
4,243
3,344
\n
Finance costs \u2013 other
27
55
\n
Total
4,301
3,501
\n
8. Taxation
\n
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Corporation tax:
\n
Current year charge
183
372
\n
Adjustments in respect of prior years
(10)
(178)
\n
Total
173
194
\n
Origination and reversal of temporary differences
12
(822)
(756)
\n
Total tax credit for the year
(649)
(562)
\n
Corporation tax is calculated at 12.5% (2021: 12.5%) of the estimated taxable profit for the year. The Irish 12.5%
\n
corporation tax rate has been used as this is the rate at which most of the Group\u2019s profits will be taxed. Taxation
\n
for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. The corporation tax
\n
charge relates primarily to our UK, Portuguese and Spanish operations where tax losses from our Irish operations
\n
cannot be utilised. The charge for the year can be reconciled to the consolidated income statement as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Loss before tax on continuing operations
(17,912)
(36,578)
\n
Tax at the Irish corporation tax rate of 12.5% (2021: 12.5%)
(2,239)
(4,572)
\n
Effects of:
\n
Tax effect of expenses that are not deductible in determining taxable profit
1,672
1,556
\n
Tax effect of losses not utilised
480
3,173
\n
Tax effect of losses utilised
(34)
\u2013
\n
Tax effect of income taxed at different rates
201
50
\n
Depreciation less than capital allowances
(53)
(130)
\n
Effect of different tax rates of subsidiaries operating in other jurisdictions
156
295
\n
Recognition of deferred tax asset
(822)
(756)
\n
Adjustments in respect of prior years
(10)
(178)
\n
Total
(649)
(562)
\n
In 2022 the Group had an unrecognised deferred tax asset of \u20ac4,607k (2021: \u20ac4,127k). No deferred tax asset was
\n
recognised in the current or prior year for unused trading tax losses as it was not considered probable that the Group
\n
will be able to utilise the deferred tax asset for these losses over a five-year period based on the profit or loss set
\n
out within the Group\u2019s 2023 budget and further four-year outlook. Unrecognised deferred tax assets relate to Irish
\n
trading losses and have no expiry date.
9. Loss per share
\n
Basic loss per share is computed by dividing the loss for the year after tax available to ordinary shareholders by the
\n
weighted average number of ordinary shares outstanding during the year.
\n
2022
2021
\n
Weighted average number of shares in issue (\u2018000s)
117,338
116,321
\n
Loss for the year (\u20ac\u2019000s)
(17,263)
(36,016)
\n
Basic loss per share (euro cent)
(14.71)
(30.96)
\n
Diluted loss per share is computed by adjusting the weighted average number of ordinary shares in issue to assume
\n
conversion of all potential dilutive ordinary shares. The issue of warrants (note 20) and share options and share awards
\n
(note 22) are the Company\u2019s only potential dilutive ordinary shares. Ordinary shares potentially issuable from
\n
share-based payment arrangements and warrants are anti-dilutive due to the loss in the financial period meaning
\n
there is no difference between basic and diluted earnings per share.
\n
2022
2021
\n
Weighted average number of ordinary shares in issue (\u2018000s)
117,338
116,321
\n
Effect of dilutive potential ordinary shares:
\n
Share options (\u2018000s)
\u2013
\u2013
\n
Weighted average number of ordinary shares for the purpose
\n
of diluted earnings per share (\u2018000s)
117,338
116,321
\n
Diluted loss per share (euro cent)
(14.71)
(30.96)
10. Intangible assets
\n
The table below shows the movements in intangible assets for the year:
\n
Goodwill
\n
Domain
\n
Names
Technology
\n
Affiliates
\n
Contracts
\n
Capitalised
\n
Development
\n
Costs
Total
\n
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
Cost
\n
Balance at 1 January 2021
47,274
214,708
14,100
5,500
18,021
299,603
\n
Additions
\u2013
\u2013
\u2013
\u2013
4,397
4,397
\n
Disposals for the year
\u2013
\u2013
(52)
\u2013
\u2013
(52)
\n
Balance at 31 December 2021
47,274
214,708
14,048
5,500
22,418
303,948
\n
Additions
\u2013
71
15
\u2013
4,511
4,597
\n
Balance at 31 December 2022
47,274
214,779
14,063
5,500
26,929
308,545
\n
Accumulated amortisation
\n
and impairment
\n
Balance at 1 January 2021
(29,426)
(150,488)
(13,922)
(5,500)
(14,015)
(213,351)
\n
Charge for year
\u2013
(7,810)
(119)
\u2013
(2,963)
(10,892)
\n
Disposals for the year
\u2013
\u2013
52
\u2013
\u2013
52
\n
Impairment recognised
\u2013
\u2013
\u2013
\u2013
(367)
(367)
\n
Balance at 31 December 2021
(29,426)
(158,298)
(13,989)
(5,500)
(17,345)
(224,558)
\n
Charge for year
\u2013
(7,813)
(32)
\u2013
(2,784)
(10,629)
\n
Balance at 31 December 2022
(29,426)
(166,111)
(14,021)
(5,500)
(20,129)
235,187
\n
Carrying amount
\n
At 31 December 2021
17,848
56,410
59
\u2013
5,073
79,390
\n
At 31 December 2022
17,848
48,668
42
\u2013
6,800
73,358
\n
Capitalised development cost additions during the year comprised of internal staff costs of \u20ac2,062k (2021: \u20ac1,708k)
\n
and other internally generated additions of \u20ac2,449k (2021: \u20ac2,689k). Development costs have been capitalised in
\n
accordance with IAS 38 Intangible Assets and are therefore not treated, for dividend purposes, as a realised loss.
\n
Hostelworld continue to utilise affiliate contracts to generate revenue and continue to pay affiliate partner commissions.
\n
Impairment review
\n
The carrying value of the capitalised development costs balance at 31 December 2022 is \u20ac6,800k (2021: \u20ac5,073k).
\n
Prior year impairment charge of \u20ac367k relates to an impairment of a specific project following a management decision
\n
to cease ongoing investment.
\n
The carrying value of the goodwill balance at 31 December 2022 is \u20ac17,848k (2021: \u20ac17,848k) and relates to an
\n
investment in Hostelworld.com Limited by the Group in 2009. Goodwill, which has an indefinite useful life, is subject
\n
to annual impairment testing, or more frequent testing if there are indicators of impairment. Following impairment
\n
testing based on the assumptions below, no impairment was recognised for goodwill in the current or prior year.
\n
The carrying value of the Group\u2019s domain names and certain technology assets, referred to henceforth as \u2018intellectual
\n
property\u2019 at 31 December 2022 is \u20ac48,668k (2021: \u20ac56,410k). Following impairment testing based on the
\n
assumptions below, no impairment was recognised for the Group\u2019s intellectual property in the current or prior year.
Cash generating units (CGUs) to which goodwill and intellectual property have been allocated represent the lowest
\n
level at which the assets are monitored for internal reporting purposes. Goodwill has not been allocated across
\n
CGUs as it is not possible to identify separate CGUs. The recoverable amount of goodwill and intellectual property
\n
allocated to a CGU is determined based on a value in use computation, which represents the highest value
\n
attributed to the assets. The key assumptions for calculating value in use of the CGUs are discount rates, growth
\n
rates and cash flows. All three assumptions are based on the Group\u2019s budgeting and forecasting process which
\n
we describe in detail.
\n
Group budgeting and forecasting assumptions used within impairment analysis
\n
Our impairment reviews are based on the 2023 budget which has been prepared on a 12-month calendar basis, and
\n
a further Board approved four-year outlook. Revenue and marketing costs projections, within Budget 2023, have
\n
been developed by triangulating three different models, where each model output has helped to validate the others.
\n
1.
Regional level forecasting reflecting an easing of the remaining travel restrictions in place. From 2020 through
\n
2022 we can evidence a correlated increase in revenue when borders reopen. We have assumed a full recovery
\n
to pre-pandemic booking levels in 2023 in our largest markets, with other markets taking longer. Forecasting at
\n
a regional level allows us to forecast specific bed prices, booking models, geo mix and seasonality effectively
\n
in our modelling;
\n
2.
Channel mix between free and paid customers where assumptions are made based on volume of new customer
\n
acquisitions, cost of customer acquisitions and anticipated bookings based on marketing spend;
\n
3.
Modelling new and returning customers by using statistical models built using over 15 years of customer data.
\n
This rich customer cohort data set enables us to model recurring revenue streams, with a high degree of
\n
predictability. We layer in additional knowledge on new customer acquisition costs and expected economics
\n
between free and paid customers.
\n
Forecasting at this regional and channel level also allows us to adjust for bed price inflation and cost of living pressures.
\n
These risks are somewhat mitigated as our target 18-34
-year-old population typically have the means and the flexibility
\n
to travel, tending to view it as a \u2018rite of passage\u2019 rather than purely discretionary spend. Our strategy focuses on
\n
customers connecting on a free platform that we provide, and hostels are a budget friendly option to travel.
\n
We have assumed in Budget 2023 a modest contraction in our ABV year on year, provisioning for unit bed price
\n
deflation versus 2022 and increased volume from Asian markets, where bed prices are lower. We have modelled
\n
modest price inflation in our operating costs.
\n
Within our four-year outlook we unwind the recovery of the remaining travel restrictions in place. We have modelled
\n
our 2022 cancellation rate for each year (which we consider heightened due to the volume of flight cancellations
\n
and disruption in 2022 and the impact of the Omicron variant in Q1 2022). Over the four-year period we have
\n
assumed growth in revenue projections, beyond 2019 volumes. This is underpinned by an improved modernised
\n
platform, a growth in return customer revenue volumes (which are statistically modelled), a growth in supply and
\n
the development of our social strategy.
10. Intangible assets
continued
\n
Consideration of climate related risks
\n
Climate related risks can impact our business as a customer may not want to travel, a hostel may be forced to close,
\n
or an area is not accessible. Revenue cashflows included in the budgeting process have captured, for example,
\n
the impacts of adverse weather conditions experienced by the Group in 2022 as we model based on historic run
\n
rates at a country and seasonal level. Any further decline in revenue growth rates which could impact the Group
\n
are represented by a decline in revenue growth rates included in the sensitivity analysis below.
\n
Discount rate applied
\n
2022
2021
\n
Pre-tax discount rate: Goodwill
16.89%
14.9%
\n
Pre-tax discount rate: Intellectual Property
17.85%
15.57%
\n
The pre-tax discount rates are based on the Group\u2019s weighted average cost of capital, calculated using the Capital
\n
Asset Pricing Model adjusted for the Group\u2019s specific beta coefficient together with a country risk premium to take
\n
account of the countries from where the CGU derives its cash flows.
\n
Discount rates have increased year on year primarily driven by movement in government bond yields in 2022
\n
which reflects market movements such as rising inflation and energy costs and global macro-economic factors
\n
including the war in Ukraine.
\n
Cash flows
\n
The cash flow projections are based on a Board approved 2023 budget and further four-year outlook described
\n
previously. In preparing the Board approved 2023 budget and further four-year outlook, management have based
\n
projections on historical performance and recovery of regions from COVID-19, together with management\u2019s
\n
expectation of future trends, primarily the social strategy. Management have also considered the Group\u2019s history
\n
of earnings and core strategic initiatives including improving the competitiveness of our core OTA business and
\n
platform modernisation.
\n
Within cash flows management have also considered capital expenditure requirements to maintain the CGU\u2019s
\n
performance and profitability. Working capital requirements are forecast to move in line with activity.
\n
Growth rates
\n
Growth rates are assessed based on the Board approved 2023 budget and further four-year outlook. For goodwill
\n
growth rates included in the 2023 budget and further four-year outlook ranged from 26% to 8% (2021: 220% to
\n
8%). The high growth rate in earlier years reflects the Group\u2019s continuing recovery from COVID-19 as the remaining
\n
travel restrictions ease, with the Budget assuming 2023 is the first full year of recovery for our largest market
\n
Europe. A terminal value of 2% (2021: 2%) growth into perpetuity was used to extrapolate cash flows beyond the
\n
2023 budget and further four-year outlook. This growth rate does not exceed the long-term average growth rate
\n
for the industry in which each CGU operates.
\n
For intellectual property growth rates included beyond the 2023 budget and further four-year outlook ranged from
\n
6% to 2% (2021: 6% to 3%), as the Group expects growth in revenues beyond 2019 volumes underpinned by an
\n
improved modernised platform, a growth in return customer revenue volumes (which we can statistically model),
\n
a growth in supply and the development of our social strategy.
\n
Sensitivity analysis
\n
The key assumptions underlying the impairment reviews are set out above. Sensitivity analysis has been conducted
\n
in respect of goodwill and intellectual property using the following sensitivity assumptions: a 2% increase in the
\n
discount rate; 10% decline in revenue in each year of the Board approved 2023 budget and further four-year
\n
outlook and nil terminal value growth. Under each scenario no impairment was identified.
Sensitivity analysis has been completed on key assumptions in isolation and in combination, and the headroom
\n
included is significant. The key assumptions are discount factor, long term growth rates and growth rates for each
\n
of the Board approved 2023 budget and further four-year outlook.
\n
From our sensitivity analysis we identified that goodwill would need to have nil terminal value growth and an increase
\n
in discount rate of 8% to be considered impaired. In addition, for our intellectual property to be considered impaired,
\n
cashflows would need to stay at 2023 levels (no growth rates apply from 2023 over the remaining useful life to
\n
2033) and the discount rate would need to increase by 1% to be considered impaired. Management consider both of
\n
these scenarios unlikely.
\n
11. Property, plant and equipment
\n
The table below shows the movements in property, plant and equipment for the year:
\n
Right-of-Use
\n
Assets (Leasehold
\n
Property)
\n
Leasehold
\n
Property
\n
Improvements
\n
Fixtures &
\n
Equipment
\n
Computer
\n
Equipment
Total
\n
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
Cost
\n
Balance at 1 January 2021
5,374
1,566
654
3,486
11,080
\n
Additions
116
\u2013
\u2013
75
191
\n
Disposals
(5,036)
(1,034)
(470)
(3,309)
(9,849)
\n
Balance at 31 December 2021
454
532
184
252
1,422
\n
Additions
1,396
\u2013
\u2013
196
1,592
\n
Disposals
(573)
\u2013
(26)
(3)
(602)
\n
Balance at 31 December 2022
1,277
532
158
445
2,412
\n
Accumulated depreciation
\n
Balance at 1 January 2021
(2,087)
(893)
(504)
(3,116)
(6,600)
\n
Charge for year
(960)
(186)
(60)
(313)
(1,519)
\n
Disposals
2,665
612
413
3,296
6,986
\n
Foreign exchange
4
\u2013
\u2013
\u2013
4
\n
Balance at 31 December 2021
(378)
(467)
(151)
(133)
(1,129)
\n
Charge for year
(791)
(62)
(20)
(95)
(968)
\n
Disposals
390
\u2013
26
2
418
\n
Foreign exchange
2
\u2013
\u2013
\u2013
2
\n
Balance at 31 December 2022
(777)
(529)
(145)
(226)
(1,677)
\n
Carrying amount
\n
At 31 December 2021
76
65
33
119
293
\n
At 31 December 2022
500
3
13
219
735
\n
Right-of-use assets relate to the Group\u2019s lease commitments for office space in Ireland, Portugal and China. In
\n
August 2021 the Group exited their long-term lease commitments for its Dublin and London offices. In the current
\n
year the Group entered into new lease agreements in Dublin, London, Portugal and China. Further detail is included
\n
in note 14. For the remaining leases the average lease term of leases entered at 31 December 2022 is less than 1
\n
year (2021: less than one year). The maturity analysis of lease liabilities is presented in note 14.
12. Deferred taxation
\n
The following are the major deferred taxation assets recognised by the Group and movements thereon during the
\n
current and prior reporting year. Deferred tax assets primarily relating to temporary differences between the carrying
\n
value of intangible assets and their tax base. The Group does not have any deferred tax liabilities (2021: \u20acnil).
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Opening balance
8,352
7,596
\n
Credited to the consolidated income statement
822
756
\n
Closing balance
9,174
8,352
\n
The deferred tax credit for the year ended 31 December 2022 of \u20ac822k (2021: \u20ac756k) relates to a deferred tax asset
\n
created in the current year for capital allowances not utilised and available for future offset. Deferred tax is determined
\n
using tax rates and laws enacted or substantively enacted by the reporting date. The total tax charge in future periods
\n
will be affected by any changes to the applicable tax rates in force in jurisdictions in which the Group operates and
\n
other relevant changes in tax legislation.
\n
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against
\n
which any unused tax losses and unused tax credits can be utilised. Further detail is included within note 2 to the
\n
financial statements.
\n
13. Investment in associate
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Opening balance
1,186
2,349
\n
Share of results of associate
(206)
(225)
\n
Capital reduction
\u2013
(938)
\n
Closing balance
980
1,186
\n
The Group holds an investment in Goki Pty Limited, an Australian resident company. Goki Pty Limited\u2019s principal activity
\n
is software development and principal place of business is Australia. The investment in an associate is accounted
\n
for using the equity method.
\n
When the initial investment was made the Group had significant influence but not control over the entity, due to the
\n
nature of its voting rights. The Group controlled 49% of the voting rights and was entitled to appoint 50% or more
\n
of the total number of Directors to the Board.
\n
On 7 July 2021 the directors of Goki PTY Limited approved a reduction in the investment held by Hostelworld.com
\n
Limited in the company. The shareholding was reduced from 49% to 31.5% through means of a capital reduction.
\n
Hostelworld.com Limited retains one Board seat, out of four, and continues to exert significant influence over the
\n
company. Hostelworld.com Limited will continue to account for Goki PTY Limited as an associate.
\n
The original purchase consideration for the investment in Goki PTY Limited was USD 3,000k. Following the completion
\n
of the reduction in investment total purchase consideration reduced to USD 1,890k. Final payment of \u20ac345k deferred
\n
consideration was made in 2021.
\n
In 2022 and 2021 the Group share of results of the associate was a loss as Goki PTY Limited is a start-up company.
\n
An impairment review was performed by management and no impairment was identified.
\n
Summarised financial information in respect of Goki Pty Limited is set out below. This represents the amounts in
\n
Goki Pty Limited\u2019s financial statements prepared in accordance with IFRSs.
Statement of financial position of Goki Pty Limited as at 31 December 2022:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current assets
8
7
\n
Current assets
825
354
\n
Current liabilities
(1,197)
(70)
\n
Equity attributable to owners of the company
(364)
291
\n
Income statement of Goki Pty Limited for the year ended 31 December 2022:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Revenue
942
430
\n
Loss after tax
(654)
(502)
\n
Other comprehensive income attributable to the owners of the company
\u2013
\u2013
\n
Total comprehensive loss
(654)
(502)
\n
Group share of results of associate
(206)
(225)
\n
*
\n
*
\n
Relates to Group share of results of associate of 49% from 1 Jan until 7 July 2021 and 31.5% from 7 July 2021 to 31 December 2021.
\n
Reconciliation of the above summarised financial information to the carrying amount of the Group\u2019s interest in Goki
\n
Pty Limited recognised in the consolidated financial statements:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Net assets of Goki Pty Limited
(364)
291
\n
Proportion of the Group\u2019s ownership interest in the associate
31.5%
31.5%
\n
Group share of net assets
(114)
92
\n
Goodwill and transaction costs
1,930
1,930
\n
Other adjustments
(836)
(836)
\n
Carrying amount of the Group\u2019s interest in associate
980
1,186
\n
Other adjustments relate to the elimination of the Group\u2019s 31.5% (2021: 31.5%) equity investment within the net assets
\n
of Goki Pty Limited and amounts to 31.5% (2021: 31.5%) of the share capital of Goki PTY Limited.
\n
Commitment to extend loan to associate
\n
Under the terms of the original shareholder purchase agreement, there was a USD 500k loan facility option available
\n
to Goki Pty Limited by the Group until July 2022. The loan facility was not extended and on 7 July 2021 was not
\n
included as part of the revised shareholder\u2019s agreement.
\n
Convertible loan note
\n
On 31 May 2022 Goki Pty Limited entered into a USD$ 1m convertible note subscription deed with an Australian
\n
special purpose vehicle (SPV). It is unsecured, has a 2-year maturity date, and does not bear interest. It is convertible
\n
to 10% of the ordinary shareholding of Goki Pty Limited any time until its maturity, at the discretion of either party.
\n
If the noteholder converts to ordinary share of Goki Pty Limited, it would result in the Group\u2019s shareholding
\n
reducing to 28.6%.
14. Lease liabilities
\n
Lease liabilities relate to the Group\u2019s lease commitments for office space in Ireland, Portugal, UK and China.
\n
The movement in the Group\u2019s right-of-use assets during the period is set out in note 11. The movement in the Group\u2019s
\n
lease liabilities during the period is as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Opening lease liability
86
4,295
\n
Additions
1,215
82
\n
Remeasurement
(46)
\u2013
\n
Modification
227
33
\n
Disposals
(183)
(3,164)
\n
Payments
(751)
(1,238)
\n
Lease interest expense
31
102
\n
Payment of lease interest expense
(31)
(102)
\n
Foreign exchange differences on lease payments
(1)
78
\n
Closing lease liability
547
86
\n
Total lease payments included in the cash flow amount to \u20ac752k (2021: \u20ac1,160k) relating to lease payments and
\n
related foreign exchange differences on lease payments. There is a clear payment schedule associated with our
\n
lease liabilities and based on our cash flow forecasts the Group does not face any significant liquidity risk with
\n
regards to its lease liabilities.
\n
The maturity analysis of these lease liabilities is as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Maturity analysis
\n
Within one year
558
85
\n
Between one and five years
\u2013
\u2013
\n
Over 5 years
\u2013
\u2013
\n
Less unearned interest
(11)
1
\n
Total
547
86
\n
These liabilities are classified in the consolidated statement of financial position as:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current lease liabilities
\u2013
\u2013
\n
Current lease liabilities
547
86
\n
Total
547
86
The Group has used the following practical expedients permitted by the standard on transition and at each reporting
\n
date \u2013 the use of a single discount rate to a portfolio of leases with reasonably similar characteristics, the accounting
\n
for operating leases with a remaining lease term of less than 12 months as at 1 January 2020 as short-term leases
\n
and the use of hindsight in determining the lease term where the contract contains options to extend or terminate
\n
the lease. The Group has elected not to reassess whether a contract is or contains a lease at the date of initial
\n
application. Instead, for contracts entered into before the transition date the Group relied on its assessment made
\n
applying IAS 17 and IFRIC 4 \u2018Determining whether an Arrangement contains a Lease\u2019
.
\n
Amounts recognised in consolidated income statement:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Net profit on disposal of leases
(1)
(793)
\n
Depreciation expense on right-of-use assets
791
958
\n
Interest expense on lease liabilities
31
102
\n
Expense relating to short term leases
321
429
\n
Total
1,142
696
\n
At 31 December 2022, the Group is not committed to any short-term leases (2021: \u20ac103k). Total cash outflow for
\n
short term amounted to \u20ac134k during 2022 (2021: \u20ac549k) and are included within operating cashflows.
\n
15. Trade and other receivables
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Amounts falling due within one year
\n
Trade receivables
611
220
\n
Prepayments and other receivables
1,265
978
\n
Value added tax
1,370
804
\n
Total
3,246
2,002
\n
Due to their short-term nature, the carrying value of trade and other receivables is deemed to be their fair value.
\n
Trade receivables are non-interest bearing and trade receivable days are 5 days (2021: 5 days).
\n
Trade receivables primarily relates to VAT to be recovered from Irish hostels and amounts due from the Group\u2019s
\n
payment processing agents, which are due for maturity within 5 days. The Group always recognises lifetime expected
\n
credit losses (ECLs) for trade receivables estimated using a provision matrix based on the Group\u2019s historical credit
\n
loss experience including an assessment of the volume of debt recovered from aged COVID-19 volumes, adjusted
\n
for factors that are specific to the debtors, general economic conditions and an assessment of both the current as
\n
well as the forecast direction of conditions at the reporting date, including time value of money where appropriate.
\n
Movement in the expected credit loss for trade receivables is as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
At the beginning of the year
65
194
\n
Decrease in loss allowance recognised during the year
(18)
(129)
\n
At the end of the year
47
65
\n
The net movement in the expected credit loss has been disclosed in the consolidated income statement.
16. Cash and cash equivalents
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current assets
\n
Cash and cash equivalents
750
750
\n
*
\n
Total
750
750
\n
Current assets
\n
Cash and cash equivalents
18,212
24,517
\n
*
\n
Total
18,212
24,517
\n
*
\n
Upon review of the April 2022 IFRIC Agenda item \u201cDemand Deposits with Restrictions on Use arising from a Contract with a Third Party (IAS 7 Statement
\n
of Cash Flows)\u2014Agenda Paper 3\u201d the Group has changed the presentation of cash and cash equivalents which are not available for use for the period
\n
ended 31 December 2022. The amount of \u20ac750k, which relates to a rental guarantee in place, has been classified in non-current assets as the guarantee
\n
is in place for a period of longer than 12 months after balance sheet date. As the amount is held in a bank account which can be accessed by the Group
\n
the amount has been disclosed as a cash and cash equivalent.
\n
Balance of cash and cash equivalents comprise cash and short-term bank deposits only.
\n
17. Share capital
\n
No of shares
\n
of \u20ac0.01 each
\n
Ordinary
\n
shares
\n
Share
\n
premium
Total
\n
(Thousands)
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
At 1 January 2021 and 31 December 2021
116,321
1,163
14,328
15,491
\n
Share issue \u2013 22 February 2022
1,184
12
\u2013
12
\n
Share issue \u2013 30 September 2022
6
\u2013
\u2013
-
\n
At 31 December 2022
117,511
1,175
14,328
15,503
\n
The Group has one class of ordinary shares which carries no right to fixed income. The share capital of the Group
\n
is represented by the share capital of the parent Company, Hostelworld Group plc. All the Company\u2019s shares are
\n
allotted, called up, fully paid and quoted on the London Stock Exchange and Euronext Dublin.
\n
On 19 February 2021, the Group agreed to issue warrants of 3,315,153 ordinary shares of \u20ac0.01 each in the capital
\n
of Hostelworld (equivalent to 2.85% of Hostelworld\u2019s issued share capital at the time of warrants issue). As at
\n
31 December 2022 no warrants had been exercised. Further detail is included within note 20.
\n
On 22 February 2022, the company issued 1,184,211 shares to satisfy restricted share awards granted by the Company
\n
at a value \u20ac0.01 per share.
\n
On 30 September 2022, the company issued 6,070 shares in relation to the 2019 SAYE at a value of \u20ac0.01 per share.
18. Other reserves
\n
The analysis of movement in reserves is shown in the statement of changes in equity.
\n
Reconciliation and movement of amounts included in other reserves are set out below:
\n
Foreign currency
\n
translation
\n
reserve (a)
\n
Share based
\n
payment
\n
reserve (b)
\n
Warrant
\n
reserve (c)
\n
Total other
\n
reserves
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
Balance at 1 January 2021
8
1,210
\u2013
1,218
\n
Exchange differences on translation
\n
of foreign operations
32
\u2013
\u2013
32
\n
Issue of warrants
20
\u2013
\u2013
3,073
3,073
\n
Credit to equity for equity settled
\n
share-based payments
\u2013
2,152
\u2013
2,152
\n
Balance at 31 December 2021
40
3,362
3,073
6,475
\n
Exchange differences on translation
\n
of foreign operations
(11)
\u2013
\u2013
(11)
\n
Transfer of exercised and
\n
expired share-based awards
\u2013
(2,431)
\u2013
(2,431)
\n
Credit to equity for equity settled
\n
share-based payments
\u2013
2,399
\u2013
2,399
\n
Balance at 31 December 2022
29
3,330
3,073
6,432
\n
(a) Foreign currency translation reserve
\n
The foreign currency reserve reflects the foreign exchange gains and losses arising from the translation of the Group\u2019s
\n
net investment in foreign operations.
\n
(b) Share-based payment reserve
\n
The share-based payment reserve reflects the equity settled share-based payment plans in operation by the Group
\n
(note 22).
\n
(c) Warrant reserve
\n
The warrant reserve relates to the warrants exercisable with HPS Investment Partners LLC (or subsidiaries or affiliates
\n
thereof) (note 20
).
19. Trade and other payables
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current liabilities
\n
Payroll taxes
9,438
8,049
\n
Total
9,438
8,049
\n
The Group has availed of the Irish Revenue tax warehousing scheme and deferred payment on all Irish employer
\n
taxes arising during the period from February 2021 to March 2022. Total amount warehoused at 31 December 2022
\n
amounted to \u20ac9,438k (2021: \u20ac8,049k). The Group continues to liaise with Irish Revenue on the matter and comply with
\n
all appropriate guidelines applicable. At 31 December 2022 amounts warehoused are recognised as non-current
\n
reflecting the intention and unconditional right not to repay balance within 12 months. The Group have agreed
\n
with the Irish Revenue to commence a repayment schedule in April 2024.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Current liabilities
\n
Trade payables
3,944
5,425
\n
Accruals and other payables
5,136
6,113
\n
Deferred revenue
3,201
1,036
\n
Payroll taxes
582
221
\n
Total
12,863
12,795
\n
At 31 December 2022, \u20ac3,005k of revenue was deferred relating to free cancellation bookings (2021: \u20ac1,020k), \u20ac178k
\n
was deferred relating to featured listings (2021: \u20ac16k) and \u20ac18k was deferred relating to Roamies (2021: \u20acnil).
\n
Included in accruals and other payables is a credit provision amounting to \u20ac150k (2021: \u20ac1,300k) for vouchers and
\n
incentives to customers for use on future bookings reflecting the expected value attached to vouchers. Reduction
\n
year on year relates to utilisation rates which materialised during 2022 where a reduced cohort of customers used their
\n
vouchers than what the Group have historically experienced and takes account of a large volume of vouchers expiring
\n
in Q1 2023 for customers who obtained a voucher instead of a refund during COVID-19. There is uncertainty on
\n
the value of the credit provision given it is based on the probability that a customer will use their voucher. The
\n
provision has not been discounted.
\n
Also included in accruals and other payables is an amount of \u20ac1,778k (2021: \u20ac2,017k) relating to customers who have
\n
cancelled their free cancellation booking but have not yet been refunded.
\n
The average credit period for the Group in respect of trade payables is 20 days (2021: 54 days). The Directors consider
\n
that the carrying amount of trade and other payables is deemed to be to their fair value.
\n
Unpaid pension contributions at 31 December 2022 amounted to \u20ac64k (2021: Nil), which were paid in full in
\n
January 2023.
20. Borrowings
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Opening Balance
28,209
1,164
\n
Received on Drawdown
\u2013
28,800
\n
Repayments
\u2013
(1,164)
\n
Loan issuance costs \u2013 issue of warrants
\u2013
(3,073)
\n
Transaction costs relating to borrowings
\u2013
(862)
\n
Finance costs
4,243
3,344
\n
Finance interest paid
(1,339)
\u2013
\n
Total
31,113
28,209
\n
On 19 February 2021 the Group signed a \u20ac30m five-year term loan facility with certain investment funds and accounts
\n
of HPS Investment Partners LLC (or subsidiaries or affiliates thereof). The facility is single drawdown and bears
\n
interest at a margin of 9.0% per annum over EURIBOR (with a EURIBOR floor of 0.25% per annum). In the first year
\n
following drawdown, all interest was rolled up and capitalised. Between the first and third anniversaries of drawdown,
\n
Hostelworld elected to capitalise 4.0% per annum of the accruing interest with the balance of the interest during
\n
that period (and all interest accruing after the third anniversary of drawdown) being cash pay.
\n
The facility agreement includes the following financial covenants: (1) adjusted net leverage (Hostelworld has to ensure
\n
that total net debt is no more than 3.0 x adjusted EBITDA from 31 December 2023 to 30 September 2024, and no more
\n
than 2.5 x adjusted EBITDA from 31 December 2024 onwards); and (2
) minimum liquidity (Hostelworld has to ensure
\n
that at close of business on the last business day of each month until it is testing the adjusted net leverage ratios
\n
there is free cash in members of the Group which have guaranteed repayment of the facility of at least \u20ac6.0 million).
\n
The lenders have the right to require repayment of the facility if Hostelworld is subject to a change in control and
\n
Hostelworld has the option to repay the facility early. If the facility is repaid for any reason within the first four years
\n
of its term a prepayment fee is payable as follows: if repayment is made (1) in the first two years after drawdown then
\n
all interest from the date of repayment to the second anniversary of drawdown is due, plus a 2% fee of the amount
\n
repaid, (2) between the second and the third anniversary of drawdown the fee is 2% of the amount repaid and
\n
(3) between the third and fourth anniversary of drawdown the fee is 1% of the amount repaid.
\n
Hostelworld and its principal trading subsidiaries will guarantee repayment of the facility and amounts payable under
\n
it and provide the lenders with a customary security package over their assets. Cash dividends to shareholders are
\n
permitted provided total net debt is below 2.0 x adjusted EBITDA, no events of default are ongoing and the above
\n
stated minimum liquidity covenant will be complied with after taking into account the proposed dividends. The Group
\n
is required to fund any new acquisitions through new equity and/or through a maximum of 50% of retained excess
\n
cashflow. Any acquisition by the Group of the remaining shareholdings in Goki PTY Limited and Counter App Limited
\n
is required to be funded from cash on the balance sheet.
\n
An amount of \u20ac28.8m was received on 23 February 2021, net of original issue discount.
\n
Issue of warrants:
\n
In connection with the facility, Hostelworld has agreed to issue warrants over 3,315,153 ordinary shares of \u20ac0.01 each
\n
in the capital of Hostelworld (equivalent to 2.85% of Hostelworld\u2019s current issued share capital at the time of issue
\n
of the warrants) to the lender. The warrants may be exercised at any time during the term of the loan and for a
\n
twelve-month period following its scheduled termination at an exercise price of \u20ac0.01 per ordinary share. Shares
\n
issued will be the same class and carry the same rights as existing shares. An amount of \u20ac3,073k was recorded for
\n
the initial recognition of the warrants calculated on the basis of the market price of the shares on the date of the
\n
agreement 19 February 2021 of \u20ac3,106,538 minus the subscription price of \u20ac33,152 (3,315,153 X \u20ac0.01). No warrants
\n
have been exercised as at 31 December 2022.
20. Borrowings
continued
\n
The Group had the following borrowing facilities in place in 2021:
\n
1.
A \u2018Prompt Pay\u2019 which was a short-term invoice financing facility with Allied Irish Banks PLC. An amount of \u20ac3,454k
\n
was drawn down in 2020. Terms attached to the facility was that Hostelworld.com Limited must ensure it maintains
\n
a cash balance of no less than \u20ac8.67m for the period ending 30 September 2020, \u20ac5.75m for the period ending
\n
31 December 2020 and \u20ac1.42m for the period ending 31 March 2021. On 26 January 2021 the amount owing on
\n
the facility was repaid in full and the facility is no longer available to the Group.
\n
2.
A three-year revolving credit facility for \u20ac7m with the Governor and Company of the Bank of Ireland to assist with
\n
the investing and development needs of the business. No amounts were ever drawn down on this facility. On
\n
10 February 2021 the Group signed a deed of release exiting the undrawn facility in place. Covenants attached to
\n
the facility as follows: Hostelworld.com Limited was to retain minimum cash balances of 20% of drawn facilities
\n
and the revolving credit facility was required to return to credit 20 days per annum. Hostelworld.com Limited were
\n
also required to maintain a minimum tangible net worth of not less than \u20ac90m.
\n
Borrowings are classified in the consolidated statement of financial position as:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current borrowings
30,869
28,209
\n
Current borrowings
244
\u2013
\n
Total
31,113
28,209
\n
Change in liabilities arising from financing activities:
\n
Lease liabilities
\n
(note 14)
Borrowings
\n
Deferred
\n
consideration
\n
(note 13)
Total debt
\n
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
At 1 January 2021
(4,295)
(1,164)
(1,266)
(6,725)
\n
Financing cash flows
1,262
(26,774)
345
(25,167)
\n
Interest paid (operating activities)
102
\u2013
\u2013
102
\n
Other non-cash movements
2,845
(271)
921
3,495
\n
Balance at 31 December 2021
(86)
(28,209)
\u2013
(28,295)
\n
Financing cash flows
783
\u2013
\u2013
783
\n
Interest paid (operating activities)
31
1,339
\u2013
1,370
\n
Other non-cash movements
(1,275)
(4,243)
\u2013
(5,518)
\n
Balance at 31 December 2022
(547)
(31,113)
\u2013
(31,660)
\n
Other non-cash movements for lease liabilities in 2022 and 2021 relate to additions, disposals, a modification and a
\n
lease term remeasurement as included in note 14. Other non-cash movements for borrowings relate to finance costs
\n
incurred and capitalised on the term loan facility (2021: the issuance costs for warrants related to borrowings).
\n
Other non-cash movements for deferred consideration is nil in the current year (2021: relates to capital reduction
\n
as detailed in note 13 and revaluation of deferred consideration).
21. Contingencies
\n
In the normal course of business, the Group may be subject to indirect taxes on its services in certain foreign
\n
jurisdictions. The Directors perform ongoing reviews of potential indirect taxes in these jurisdictions. Although the
\n
outcome of these reviews and any potential liability is uncertain, no provision has been made in relation to these
\n
taxes as the Directors believe that it is not probable that a material liability will arise.
\n
22. Share based payments
\n
Overall, the Group recognised an expense of \u20ac2,396k (2021: \u20ac2,162k) relating to equity settled share-based payment
\n
transactions in the consolidated income statement during the year. \u20ac678k (2021: \u20ac719k) relates to Long Term
\n
Incentive Plan (LTIP) scheme, \u20ac1,697k (2021: \u20ac1,392k
) is in relation to the Group\u2019s Restricted Share awards (RSU
)
\n
scheme, and \u20ac21k (2021: \u20ac51k) in relation to the Save As You Earn (SAYE
) scheme. All schemes are accounted for
\n
as equity settled in the financial statements.
\n
Long Term Incentive Plan (LTIP) scheme
\n
The Group operate a Long-Term Incentive Plan for executive Directors and selected management. There were no
\n
LTIP schemes created in 2022.
\n
In 2021, there was one invitation made to executive directors and selected management to participate in the Group\u2019s
\n
long-term incentive plan (LTIP). 2,336,885 nil cost options were granted, and these options will vest on 26 April 2024
\n
subject to meeting performance conditions based on the Company's adjusted EBITDA over a three-year period,
\n
Counter App revenue generated based on a target in 2023 and customer acquisition value targets to be met in 2023.
\n
No amendments were made to the performance conditions in 2021, but the target for each performance condition was
\n
amended. By late 2021, it was clear that the business environment had changed materially since the start of the year,
\n
when the targets for the 2021 award had originally been set. In particular the emergence of the Omicron COVID-19
\n
variant at the end of 2021 significantly increased the level of uncertainty around the pace of the post-pandemic
\n
recovery. It also proved very difficult to predict likely customer behaviour in such an environment. Based on the revised
\n
company projections, the targets were amended to align to what was originally set as being achieved in 2021. As
\n
such we have deemed no additional benefit was given to employees and therefore we have not adjusted the fair
\n
value of the shares following the amendment. Further detail is set out within the Remuneration Committee report
\n
on pages 121 and 122.
\n
For the 2020 scheme vesting conditions are dependent on the Adjusted Earnings per Share (EPS) performance
\n
and Total Shareholder Return (TSR) of the Group over a three-year period (the performance period
). Up to 25% of
\n
the shares/options subject to an award will vest according to the Group\u2019s adjusted EPS growth compared with
\n
target during the performance period. Up to 75% of the shares/options subject to an invitation will vest according
\n
to the Group\u2019s TSR performance during the performance period measured against the TSR performance indicators
\n
approved by the Remuneration Committee. There have been no amendments made to the 2020 scheme. Based
\n
on a review of the LTIP 2020 performance conditions as at 31 December 2022 the EPS condition accounting for
\n
25% will not vest. The TSR condition will be assessed based on the performance period in 2023.
\n
The 2019 LTIP scheme did not vest.
22. Share based payments
continued
\n
Details of the share options outstanding during the year are as follows:
\n
2022
2021
\n
No. of
\n
share options
\n
No. of
\n
share options
\n
Outstanding at beginning of year
4,741,475
3,919,734
\n
Granted during the year
\u2013
2,336,885
\n
Forfeited or expired during the year
(494,129)
(1,515,144)
\n
Exercised during the year
\u2013
\u2013
\n
Vested during the year
\u2013
\u2013
\n
Outstanding at the end of the year
4,247,346
4,741,475
\n
Exercisable at the end of the year
2,421,646
\u2013
\n
For all schemes an award will lapse if a participant ceases to be an employee or an officer within the Group before
\n
the vesting date and is not subject to good leaver provisions.
\n
Included in the number of options forfeited in 2021, are 745,199 of the 2019 awards which did not meet the vesting
\n
conditions based on performance conditions from 1 January 2019 to 31 December 2021.
\n
If the conditions are met, the remaining awards will vest on the later of the 3 anniversary of the grant and the
\n
determination of the performance condition and will then remain exercisable until the 7 anniversary of the date
\n
of grant, provided the individual remains an employee or officer of the Group or is subject to good leaver provisions.
\n
The measurement period for the 2020 and 2021 awards for performance conditions is over 3 years from 2 May
\n
2020 to 1 May 2023 and from 27 April 2021 to 26 April 2024 respectively.
\n
Share options under the LTIP scheme have an exercise price of \u00a3nil. The fair value, at the grant date, of the TSR-based
\n
conditional awards was measured using a Monte Carlo simulation model.
\n
Fair value of options granted during the year:
\n
At the grant date, the fair value per conditional award and the assumptions used in the calculations are as follows:
\n
April 2021
May 2020
\n
Year of potential vesting
2024
2023
\n
Number of share options granted
2,336,885
3,793,200
\n
Share price at grant date
\u00a31.00
\u00a30.74
\n
Exercise price per share option
\u00a3nil
\u00a3nil
\n
Expected volatility of Company share price
n/a
51.86%
\n
Expected life
3 years
3 years
\n
Expected dividend yield
nil
6.06%
\n
Risk free interest rate
n/a
0.08%
\n
Weighted average fair value at grant date
\u00a31.00
\u00a30.49
\n
Remaining weighted average life of options (years)
1.32
0.33
\n
Expected volatility was determined based on the market performance of the Company over a period of 36 months
\n
prior to the date of grant for all the 2020 and 2019 awards.
Market based vesting conditions, such as the TSR condition, have been taken into account in establishing the fair
\n
value of equity instruments granted. Non-market-based performance conditions, such as the EPS conditions, were
\n
not taken into account in establishing the fair value of equity instruments granted, however the number of equity
\n
instruments included in the measurement of the transaction is adjusted so that the amount recognised is based
\n
on the number of equity instruments that are expected to vest.
\n
Restricted Share Awards (RSU) Scheme
\n
In 2022 a new RSU award was granted. The 2022 share awards granted will vest after a three-year period. Vesting
\n
will be dependent upon the participant being employed by the Group as of the vesting date and satisfactory
\n
personal performance.
\n
During 2021 the Company granted a RSU to selected employees in lieu of a cash bonus, including the executive
\n
directors and members of the management team. In total 2,642,212 share awards were granted. 50% of the award
\n
vested on 28 February 2022 and 1,184,211 shares were issued. The remaining 50% will vest on 28 February 2023.
\n
Vesting will be dependent upon the participant being employed by the Group as of the vesting date and
\n
satisfactory personal performance.
\n
2022
2021
\n
Outstanding at the beginning of the period
2,329,810
\u2013
\n
Granted during the year
3,339,084
2,642,212
\n
Exercised during the year
(1,184,211)
\u2013
\n
Forfeited
(475,315)
(312,402)
\n
Outstanding at the end of the period
4,009,368
2,329,810
\n
Exercisable at the end of the period
1,005,746
1,274,081
\n
Save As You Earn (SAYE) scheme
\n
During the years ended 31 December 2022 and 2021, the Group did not approve the granting of any new SAYE scheme
\n
following the withdrawal of Ulster Bank from the Irish market who were the only bank with an Irish banking licence
\n
that accepted new accounts for Save As You Earn schemes.
\n
Prior to 2021, a scheme was approved in 2019 and 2020. At 31 December 2022 members of the 2019 SAYE scheme
\n
still had an option to exercise their shares, if they wished. The schemes last three years and employees may choose
\n
to purchase shares at the end of the three-year period at the fixed discounted price set at the start. The share price
\n
for the scheme has been set at a 20% discount for Irish and UK based employees in line with amounts permitted
\n
under tax legislation in both jurisdictions.
\n
Number of SAYE
\n
share options granted
\n
2022
2021
\n
Outstanding at beginning of year
277,624
447,094
\n
Granted during the year
\u2013
11,541
\n
Vested during the year
(6,070)
\u2013
\n
Forfeited during the year
(47,584)
(181,011)
\n
Outstanding at end of year
223,970
277,624
\n
Exercisable at the end of year
223,970
62,847
\n
For all schemes an award will lapse if a participant ceases to be an employee or an officer within the Group before
\n
the vesting date.
22. Share based payments
continued
\n
At the grant date, the fair value for each SAYE award and the assumptions used in the calculations are as follows:
\n
Scheme
UK office
Irish office
\n
Grant date
August 2020
August 2020
\n
Year of potential vesting
2023
2023
\n
Share price at grant date
\u00a30.63
\u20ac0.70
\n
Exercise price per share option
\u00a30.50
\u20ac0.56
\n
Expected volatility of company share price
54.2%
54.2%
\n
Expected life
3 years
3 years
\n
Expected dividend yield
6.13%
6.13%
\n
Risk free interest rate
\u20130.03%
\u20130.03%
\n
Weighted average fair value at grant date
\u00a30.20
\u20ac0.22
\n
Valuation model
Black Scholes
Black Scholes
\n
Expected volatility was determined in line with market performance of the Company for the 2020 scheme.
\n
Cash settled share-based payments
\n
During 2018, the Group issued to certain individuals share appreciation rights (SARs), in the form of Phantom Shares
\n
that require the Group to pay the intrinsic value of the SAR at the date of exercise. The Group has recorded liabilities
\n
of \u20ac62k and a corresponding expense of \u20ac62k in relation to these SARs as at 31 December 2022 (2021: \u20ac26k). Where
\n
relevant the fair value of these SARs was determined by using the same inputs as used for the RSU share awards.
\n
23. Related party transactions
\n
Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated
\n
on consolidation and are not disclosed in this note.
\n
Directors\u2019 remuneration
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Salaries, fees, bonuses and benefits in kind
1,130
1,076
\n
Amounts receivable under long-term incentive schemes
277
257
\n
Termination benefits
\u2013
\u2013
\n
Other remuneration
623
402
\n
Pension contributions
65
61
\n
Total
2,095
1,796
\n
Retirement benefit charges arise from pension payments relating to 2 Executive Directors (2021: 2). Other remuneration
\n
of \u20ac623k relates to share-based payment expense in respect of the Restricted Share awards (RSU) scheme operated
\n
in 2021 (2021: \u20ac402k).
Key management personnel
\n
The Group\u2019s key management comprise the Board of Directors and senior management having authority and
\n
responsibility for planning, directing and controlling the activities of the Group.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Short term benefits
2,568
2,608
\n
Share based payments charge
1,877
1,450
\n
Termination benefits
200
593
\n
Post-employment benefits
134
152
\n
Total
4,779
4,803
\n
24. Subsidiaries and associates
\n
Subsidiaries
\n
The following is a list of the Company\u2019s current investments in subsidiaries, including the name, country of incorporation,
\n
and proportion of ownership interest:
\n
Company
Holding
Nature of Business
Registered Office
\n
Hostelworld.com Limited
\n
196 Ordinary shares @ \u20ac1
\n
100%
\n
*
\n
Technology trading company
Charlemont Exchange
\n
Charlemont St
\n
Dublin
\n
D02 VN88
\n
Ireland
\n
Hostelworld Services Portugal LDA
\n
500 Ordinary shares @ \u20ac1
\n
100%
Marketing and research
\n
and development
\n
services company
\n
Rua Ant\u00f2nio Nicolau D\u2019Almeid
\n
45, 5 Floor
\n
4100-320 Oporto
\n
Portugal
\n
Hostelworld Business Consulting
\n
(Shanghai) Co., Limited
\n
**
\n
100%
Business information
\n
consulting and
\n
marketing planning
\n
Suite 304
\n
Block 2
\n
No.425 Yanping Road
\n
Jing\u2019an District
\n
Shanghai China 200042
\n
\u5ef6\u5e73\u8def
425
\u53f7
2
\u5e62
304
\u5ba4
\n
\u4e0a\u6d77
,
\u4e2d\u56fd
\n
Hostelworld Services Limited
\n
104,123 Ordinary shares @ \u00a30.001
\n
100%
\n
*
\n
Marketing services and
\n
technology trading company
\n
Floor 5
\n
38 Chancery Lane
\n
The Cursitor
\n
London
\n
WC2A 1EN
\n
United Kingdom
\n
*
\n
Held directly by the Company
\n
**
\n
3 Million RMB contributed by Hostelworld.com Limited for 100% ownership of subsidiary
\n
On 12 May 2022, a resolution was passed to liquidate Counter App Limited, a subsidiary of Hostelworld.com Limited.
\n
The trade was transferred to another Group entity, Hostelworld.com Limited.
\n
All subsidiaries have the same reporting date as the Company being 31 December.
24. Subsidiaries and associates
continued
\n
Associates
\n
The following details the Company\u2019s current investment in associates, including the name, country of incorporation,
\n
and proportion of ownership interest:
\n
Company
Holding
Nature of Business
Registered Office
\n
Goki Pty Limited
49%/31.5%
\n
*
\n
Technology company
477 Kent St,
\n
Sydney
\n
NSW 2000,
\n
Australia
\n
*
\n
49% up until 7 July 2021
\n
On 7 July 2021 the directors of Goki PTY Limited approved a reduction in the investment held by Hostelworld.com
\n
Limited in the company. The shareholding was reduced from 49% to 31.5% through means of a capital reduction.
\n
25. Financial risk management
\n
Financial risk factors
\n
The Directors manage the Group\u2019s capital, consisting of both debt and equity, to ensure that the Group will be able
\n
to continue as a going concern while also maximising the return to stakeholders. As part of this process, the Directors
\n
review financial risks such as liquidity risk, credit risk, foreign exchange risk and interest rate risk regularly.
\n
Liquidity risk
\n
Cash flow forecasting is monitored by rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient
\n
cash to meet operational needs while not breaching any covenants that the Group adheres to. Such forecasting takes
\n
into consideration the Group\u2019s debt financing plans. There have been no new financing arrangements entered into
\n
in the current year. The Group will look to refinance the term-loan facility in 2023, to reduce interest rate costs.
\n
There have been no significant developments in this respect after the balance sheet date.
\n
The Group\u2019s policy is to ensure that it has sufficient long-term funding in place to meet its payment obligations and
\n
complies with covenants. The risk is managed centrally by the Group and reviewed by the Board on a regular basis.
\n
The table below analyses the Group\u2019s financial liabilities into relevant maturity groupings based on the remaining
\n
period at the reporting date to the contractual maturity date. The Group had no derivative financial liabilities in the
\n
current or prior year. The amounts disclosed in the table are the contractual undiscounted cash flows.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Up to 1 year
\n
Borrowings
244
\u2013
\n
Trade and other payables
12,131
11,274
\n
Total up to 1 year
12,375
11,274
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Between 2 and 5 years
\n
Borrowings
34,066
32,453
\n
Total between 2 and 5 years
34,066
32,453
\n
Total
46,441
43,727
Interest rate risk
\n
The principal aim of managing interest rate risk is to limit the adverse impact on cash flows of movements in interest
\n
rates. Cash requirements are managed centrally by the Group. The Group only has one debt facility in place with
\n
HPS where the Group is charged 9.0% per annum over Euribor (with a Euribor floor of 0.25% per annum).
\n
The Group\u2019s current models include the most up to date forecasted EURIBOR rates from two leading Irish banks.
\n
As at 31 December, we have performed a sensitivity analysis taking into account these forecasted rates. We have
\n
considered a further 2% increase in Euribor rates which would result in a \u20ac2.2m impact on the Income Statement,
\n
over the duration of the tenure from the balance sheet date, with respect to the interest charge on HPS debt facility.
\n
Credit risk and foreign exchange risk
\n
Credit risk refers to the risk of financial loss to the Group if a counterparty defaults on its contractual obligations on
\n
financial assets held on the Statement of Financial Position.
\n
The Directors monitor the credit risk associated with trade receivables and cash and cash equivalent balances on an
\n
on-going basis. The Group\u2019s trade receivable balances primarily relate to VAT receivable balances from Irish hostels
\n
and amounts due from the Group\u2019s payment processing agents. Amounts due from the Group\u2019s payment processing
\n
agent are due for maturity within 5 days. Accordingly, the associated credit risk is determined to be low. These trade
\n
receivable balances, which consist of euro, US dollar and Sterling amounts, are settled within a relatively short period
\n
of time, which reduces any potential foreign exchange exposure risk.
\n
The aged analysis of trade receivables for the year ended 31 December 2022 and 31 December 2021 is summarised
\n
in the table below.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Receivable within 1 month of the balance sheet date
552
178
\n
Receivable between 1 and 3 months of the balance sheet date
18
35
\n
Receivable greater than 3 months of the balance sheet date
41
7
\n
Total trade receivables
611
220
\n
The figures disclosed above are stated net of allowances for impairment
\n
At 31 December 2022 and 2021, all material cash balances are held with banks with a minimum credit rating of BBB-,
\n
as assigned by international credit rating agencies. As a result, the credit risk on cash balances is limited. The carrying
\n
value of trade receivables, trade payables and cash and cash equivalents is a reasonable approximation of their
\n
fair value. The Group does not enter into or trade financial instruments, including derivative financial instruments,
\n
for speculative purposes.
\n
The Board considers capital to comprise of long-term debt as disclosed in note 20 and equity as disclosed in note 17.
\n
The Directors\u2019 objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern
\n
in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital
\n
structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Directors may adjust
\n
the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets. In 2022
\n
and 2021 cash dividends were suspended while the Group continues to recover following the impact of COVID-19.
\n
The Group will ensure it retains sufficient reserves to manage its day to day cash requirements, including capital
\n
expenditure requirements, whilst ensuring appropriate dividends are distributed to shareholders.
26. Dividends
\n
There are no cash dividends in 2022 or 2021. Future cash dividend payments will be subject to the Group generating
\n
profit after tax, the Group\u2019s cash position, any restrictions in the Group\u2019s banking facilities and subject to compliance
\n
with Companies Act 2006 requirements regarding ensuring sufficiency of distributable reserves at the time of paying
\n
the dividend.
\n
27. Parent company exemption
\n
The Company has taken advantage of the exemption provided under section 408 of the Companies Act 2006 not
\n
to publish its individual income statement and related notes.
\n
28. Events after the Balance Sheet date
\nThere are no significant events after the balance sheet date.", "dimensions": { "concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13015": { "value": "General Information
Hostelworld Group plc, hereinafter \u201cthe Company\u201d, is a public limited Company incorporated in the United Kingdom
\n
on the 9 October 2015 under the Companies Act 2006 and is registered in England and Wales. The registered
\n
office of the Company is One Chamberlain Square, Birmingham, B3 3AX, United Kingdom.
\n
The Company and its subsidiaries (together \u201cthe Group\u201d) provide software and data processing services that facilitate
\n
hostel, B&B, hotel and other accommodation bookings worldwide.
\n
The Company\u2019s shares are quoted on Euronext Dublin and the London Stock Exchange.
\n
The Company and consolidated financial statements were approved and authorised for issue by the Board of
\nDirectors on 21 March 2023.", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13018": { "value": "Hostelworld Group plc", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13019": { "value": "Hostelworld Group plc", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13020": { "value": "public limited Company", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13021": { "value": "United Kingdom", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13022": { "value": "United Kingdom", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13025": { "value": "One Chamberlain Square, Birmingham, B3 3AX, United Kingdom.", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13027": { "value": "software and data processing services that facilitate hostel, B&B, hotel and other accommodation bookings worldwide.", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13030": { "value": "worldwide", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13033": { "value": "The Company and consolidated financial statements were approved and authorised for issue by the Board of Directors on 21 March 2023.", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13038": { "value": "Going concern
The Directors, after making enquiries, have a reasonable expectation that the Group and Company has adequate
\n
resources to continue operating as a going concern for the foreseeable future.
\n
Since the beginning of the COVID-19 pandemic, the Group has maintained strong discipline over its cost base and
\n
cash reserves, with trading and cash forecasts being prepared on a weekly basis. Actions taken in the current period
\n
by the Directors to preserve the Group\u2019s cash position include the non-payment of cash dividends, the elimination
\n
of all non-essential operating costs including marketing, recruitment, travel and other variable overheads, the
\n
employment of a procurement manager to closely monitor and challenge contract spend in place, the non-payment
\n
of cash bonuses and the issuance of a restricted stock option in lieu of a cash bonus to employees, exiting our long
\n
term lease commitment facilities in favour of smaller office spaces across our locations, organisational redesigns
\n
and associated headcount reductions, and Government COVID-19 supports in Ireland which were availed of until
\n
February 2022, as well as warehousing of Irish employer and employee taxes incurred to March 2022.
\n
The 2023 budget has been prepared on a 12-month calendar basis, with the Board also approving a further four-year
\n
outlook, which has also been considered within going concern to capture a period of one year from date of signing.
\n
Revenue and marketing cost projections within Budget 2023 have been developed by triangulating three different
\n
models, where each model output has helped to validate the others.
\n
1.
Regional level forecasting reflecting an easing of the remaining travel restrictions in place. From 2020 through
\n
2022 we can evidence a correlated increase in revenue when borders reopen. We have assumed a full recovery
\n
to pre-pandemic booking levels in 2023 in our largest markets, with other markets taking longer. Forecasting
\n
at a regional level allows us to forecast specific bed prices, booking models, geographic mix and seasonality
\n
effectively in our modelling;
\n
2.
Channel mix between free and paid customers where assumptions are made based on volume of new
\n
customer acquisitions, cost of customer acquisitions and anticipated bookings based on marketing spend;
\n
3.
Modelling new and returning customers by using statistical models built using over 15 years of customer data.
\n
This rich customer cohort data set enables us to model recurring revenue streams, with a high degree of
\n
predictability. We layer in additional knowledge on new customer acquisition costs and expected economics
\n
between free and paid customers.
\n
Forecasting at this regional and channel level also allows us to adjust for bed price inflation and cost of living pressures.
\n
These risks are somewhat mitigated as our target 18-34
-year-old population typically have the means and the
\n
flexibility to travel, tending to view it as a \u2018rite of passage\u2019 rather than purely discretionary spend. Hostels are a
\n
cost-effective means to travel and our strategy focuses on customers connecting on a free platform that we provide.
We have assumed in Budget 2023 a modest contraction in our ABV year on year, provisioning for unit bed price
\n
deflation versus 2022 and increased volume from Asian markets, where bed prices are lower. We have modelled
\n
modest price inflation in our operating costs.
\n
We have not assumed any revenue from partnerships such as Roamies, Goki and Counter in our financial modelling.
\n
Climate related risks can impact our business as a customer may not want to travel, a hostel may be forced to close,
\n
or an area is not accessible. The budgeting process has incorporated all operating costs relating to our sustainability
\n
roadmap, as well as the cost of future emission reductions and offsets. Following an assessment completed by
\n
the Group, the budget does not contain any other liabilities, provisions or contingent liabilities relating to climate
\n
change. Revenue cashflows included in the budgeting process have captured for example the impacts of adverse
\n
weather conditions experienced by the Group in 2022 as we model based on historic run rates at a country and
\n
seasonal level.
\n
In addition to our base budget for 2023, we have prepared three additional scenarios that depict different recovery
\n
levels and trading volumes. An upside scenario tracks an increase in revenue and operating expenses. A downside
\n
scenario includes reduced revenue while maintaining the same level of operating spend. A worst-case includes
\n
further reduced revenue with a reduction in operating cost spend to mitigate. Under all scenarios, the Group has
\n
sufficient cash reserves available and remains compliant with financial covenants under its current term loan facility
\n
agreement with HPS Investment Partners LLC (or subsidiaries or affiliates thereof). The Group has also set out in its
\n
viability statement on pages 46 to 49 additional scenarios considered by the Group in its assessment of going concern.
\n
The directors took steps to ensure adequate liquidity is available to the Group for the duration of the pandemic and
\n
recovery period. On 19 February 2021 the Group signed a \u20ac30m five-year term loan facility with certain investment
\n
funds and accounts of HPS Investment Partners LLC (or subsidiaries or affiliates thereof). An amount of \u20ac28.8m was
\n
received on 23 February 2021. The key features of the facility are as follows:
\n
\u2022
The facility is single drawdown and bears interest at a margin of 9.0% per annum over EURIBOR (with a EURIBOR
\n
floor of 0.25% per annum).
\n
\u2022
Financial covenants comprise (1) adjusted net leverage (Hostelworld has to ensure that total net debt is no more
\n
than 3.0 x adjusted EBITDA from 31 December 2023 to 30 September 2024, and no more than 2.5 x adjusted
\n
EBITDA from 31 December 2024 onwards); and (2
) minimum liquidity (Hostelworld has to ensure that at close
\n
of business on the last business day of each month until it is testing the adjusted net leverage ratios there is
\n
free cash in members of the Group which have guaranteed repayment of the facility of at least \u20ac6.0 million).
\n
\u2022
Security on the facility includes the share capital of the Group, the bank accounts of the Group and the Group\u2019s
\n
intellectual property.
\n
We were in compliance with our minimum liquidity covenants at 31 December 2022.
\n
At this point in time, the consequences of the current unrest in Ukraine are uncertain. We have not experienced a
\n
significant impact to our revenue during 2022, and we continue to monitor any development in the conflict, and the
\n
impact to the Group closely. The Group has no operations in either Russia or Ukraine and total forecasted revenues
\n
for 2022 in these regions was less than 0.01% of the Group\u2019s net revenue. No revenue has been budgeted for these
\n
countries in 2023.
\n
Having considered the Group\u2019s Board approved 2023 budget, cash flow forecasts prepared for 12 months from 21 March
\n
2023, current and anticipated trading volumes, current and anticipated levels of cash and debt, together with mitigating
\n
actions available, the Directors are satisfied that the Group and Company has sufficient resources to continue in
\n
operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly,
\nthey continue to adopt the going concern basis in preparing the Group financial statements. ", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13128": { "value": "2022-12-31", "dimensions": { "concept": "ifrs-full:DateOfEndOfReportingPeriod2013", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13154": { "value": "Basis of Preparation
The financial statements have been prepared in conformity with the requirements of the Companies Act 2006 and
\n
UK adopted International Financial Reporting Standards (IFRS) and IFRS adopted pursuant to Regulation (EC)
\n
No 1606/2002 as it applies in the European Union.
\n
The consolidated financial statements also comply with Article 4 of the EU IAS Regulation. References to IFRS
\n
hereafter refer to UK adopted IFRS and IFRS adopted by the EU.
\n
The consolidated financial statements have been prepared under the historical cost basis. The investment in
\n
associate is accounted for using the equity method.
\n
In the preparation of these consolidated financial statements the accounting policies set out below have been
\n
applied consistently by all Group companies. The consolidated financial statements are presented in euro which is
\n
the currency of the primary economic environment in which the Group operates.
\n
Re-presentation
\n
Certain comparative amounts in note 4 operating expenses and note 6 staff costs have been re-presented to exclude
\n
third party contractor costs, on a basis consistent with the current year. Comparative amounts in the Income
\n
Statement and note 4 operating expenses have been re-presented to disclose any reversals of impairment of trade
\n
receivables on the face of the Income Statement. For both items, there is no impact on net assets, or the Group\u2019s
\n
loss for the period ended 31 December 2021.
\n
In addition, upon review of the April 2022 IFRIC Agenda item \u201cDemand Deposits with Restrictions on Use arising
\n
from a Contract with a Third Party (IAS 7 Statement of Cash Flows) \u2013 Agenda Paper 3\u201d the Group has changed the
\n
presentation of cash and cash equivalents which are not available for use for the period ended 31 December 2021.
\n
The amount of \u20ac750k, which relates to a rental guarantee in place, has been classified in non-current assets as
\n
the guarantee was in place for a period of longer than 12 months after balance sheet date. This has no impact on
\nnet assets, net debt or the Group\u2019s loss for the period ended 31 December 2021.", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13157": { "value": "The financial statements have been prepared in conformity with the requirements of the Companies Act 2006 and
UK adopted International Financial Reporting Standards (IFRS) and IFRS adopted pursuant to Regulation (EC)
\n
No 1606/2002 as it applies in the European Union.
\n
The consolidated financial statements also comply with Article 4 of the EU IAS Regulation. References to IFRS
\nhereafter refer to UK adopted IFRS and IFRS adopted by the EU.", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13167": { "value": "In the preparation of these consolidated financial statements the accounting policies set out below have been
applied consistently by all Group companies. The consolidated financial statements are presented in euro which is
\nthe currency of the primary economic environment in which the Group operates.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13173": { "value": "Re-presentation
Certain comparative amounts in note 4 operating expenses and note 6 staff costs have been re-presented to exclude
\n
third party contractor costs, on a basis consistent with the current year. Comparative amounts in the Income
\n
Statement and note 4 operating expenses have been re-presented to disclose any reversals of impairment of trade
\n
receivables on the face of the Income Statement. For both items, there is no impact on net assets, or the Group\u2019s
\n
loss for the period ended 31 December 2021.
\n
In addition, upon review of the April 2022 IFRIC Agenda item \u201cDemand Deposits with Restrictions on Use arising
\n
from a Contract with a Third Party (IAS 7 Statement of Cash Flows) \u2013 Agenda Paper 3\u201d the Group has changed the
\n
presentation of cash and cash equivalents which are not available for use for the period ended 31 December 2021.
\n
The amount of \u20ac750k, which relates to a rental guarantee in place, has been classified in non-current assets as
\n
the guarantee was in place for a period of longer than 12 months after balance sheet date. This has no impact on
net assets, net debt or the Group\u2019s loss for the period ended 31 December 2021.", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13189": { "value": "Basis of consolidation
Subsidiaries
\n
The consolidated financial statements incorporate the financial statements of the Company and entities controlled
\n
by the Company (its subsidiaries) all of which prepare financial statements up to 31 December.
\n
Control is achieved when the Company has the power over the investee, is exposed, or has rights, to variable return
\n
from its investment with the investee and has the ability to use its power to affect its returns. The financial statements
\n
of subsidiaries are included in the consolidated financial statements from the date that control commences until the
\n
date that control ceases. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to
\n
transactions between the members of the Group are eliminated on consolidation. Unrealised losses are also eliminated,
\n
except where they provide evidence of impairment.
\n
Associates
\n
Associates are entities over which the Group has significant influence but not control, generally accompanying a
\n
shareholding of between 20% and 50% of the voting rights. Significant influence is the power to participate in the
\n
financial and operating policy decisions of the investee but is not control over those policies.
\n
Investments in associates are accounted for using the equity method of accounting and are initially recognised at
\n
cost. On acquisition of the investment in associate, any excess of the cost of the investment over the Group\u2019s share
\n
of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included
\n
within the carrying value of the investment.
The Group\u2019s share of its associates\u2019 post-acquisition profits or losses is recognised in \u2018Share of results of associate\u2019
\n
in the consolidated income statement, and its share of post-acquisition movements in reserves is recognised in the
\n
consolidated statement of changes in equity. The cumulative post-acquisition movements are adjusted against the
\n
carrying amount of the investment, less any impairment in value. Where indicators of impairment arise, the carrying
\n
amount of the associate is tested for impairment by comparing its recoverable amount with its carrying amount.
\n
The requirements of IAS 36 are applied to determine whether it is necessary to recognise any impairment loss with
\n
respect to the Group\u2019s investment in an associate. When necessary, the entire carrying amount of the investment
\n
(including goodwill) is tested for impairment in accordance with IAS 36 as a single asset by comparing its recoverable
\n
amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss
\n
recognised is not allocated to any asset, including goodwill that forms part of the carrying amount of the investment.
\n
Any reversal of that impairment loss is recognised in accordance with IAS 36 to the extent that the recoverable
\n
amount of the investment subsequently increases.
\n
Unrealised gains arising from transactions with associates are eliminated to the extent of the Group\u2019s interest in the
\n
entity. Unrealised losses are eliminated to the extent that they do not provide evidence of impairment. When the
\n
Group\u2019s share of losses in an associate equals or exceeds its interest in the associate, the Group does not recognise
\n
further losses unless the Group has incurred obligations or made payments on behalf of the associate. The accounting
\n
policies of associates are amended where necessary to ensure consistency of accounting treatment at Group level.
\n
When the Group ceases to have significant influence, any retained interest in the entity is re-measured to its fair value
\n
at the date when significant influence is lost with the change in carrying amount recognised in the consolidated
\n
income statement. The Group also reclassifies any movements previously recognised in other comprehensive
\n
income to the consolidated income statement.
\n
Business combinations
\n
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a
\n
business combination is measured at fair value, which is calculated as the sum of the acquisition date fair values
\n
of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and
\n
the equity interests issued by the Group in exchange for control of the acquiree.
\n
Acquisition related costs are recognised in the consolidated income statement as incurred.
\n
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value
\n
at the acquisition date, except that:
\n
\u2022
Deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised
\n
and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;
\n
\u2022
Liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
\n
payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree
\n
are measured in accordance with IFRS 2 Share-based Payment at the acquisition date; and
\n
\u2022
Assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held
\n
for Sale and Discontinued Operations are measured in accordance with that standard.
\n
The fair value of the assets and liabilities are based on valuations using assumptions deemed by management to
\n
be appropriate. Professional valuers are engaged when it is deemed appropriate to do so.
\n
Goodwill represents the excess of the aggregate of the consideration transferred and the amount of any non-
\n
controlling interest in the acquired entity over the net identifiable assets acquired.
1. Significant accounting policies
continued
\n
Non-controlling interests
\n
Non-controlling interests represent the portion of the equity of a subsidiary not attributable either directly or
\n
indirectly to the Group and are presented separately in the consolidated income statement and within equity in the
\n
consolidated statement of financial position, distinguished from shareholders\u2019 equity attributable to the owners of
\nthe parent Company.", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13192": { "value": "Subsidiaries
The consolidated financial statements incorporate the financial statements of the Company and entities controlled
\n
by the Company (its subsidiaries) all of which prepare financial statements up to 31 December.
\n
Control is achieved when the Company has the power over the investee, is exposed, or has rights, to variable return
\n
from its investment with the investee and has the ability to use its power to affect its returns. The financial statements
\n
of subsidiaries are included in the consolidated financial statements from the date that control commences until the
\n
date that control ceases. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to
\n
transactions between the members of the Group are eliminated on consolidation. Unrealised losses are also eliminated,
\nexcept where they provide evidence of impairment.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13204": { "value": "Associates
Associates are entities over which the Group has significant influence but not control, generally accompanying a
\n
shareholding of between 20% and 50% of the voting rights. Significant influence is the power to participate in the
\n
financial and operating policy decisions of the investee but is not control over those policies.
\n
Investments in associates are accounted for using the equity method of accounting and are initially recognised at
\n
cost. On acquisition of the investment in associate, any excess of the cost of the investment over the Group\u2019s share
\n
of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included
\n
within the carrying value of the investment.
The Group\u2019s share of its associates\u2019 post-acquisition profits or losses is recognised in \u2018Share of results of associate\u2019
\n
in the consolidated income statement, and its share of post-acquisition movements in reserves is recognised in the
\n
consolidated statement of changes in equity. The cumulative post-acquisition movements are adjusted against the
\n
carrying amount of the investment, less any impairment in value. Where indicators of impairment arise, the carrying
\n
amount of the associate is tested for impairment by comparing its recoverable amount with its carrying amount.
\n
The requirements of IAS 36 are applied to determine whether it is necessary to recognise any impairment loss with
\n
respect to the Group\u2019s investment in an associate. When necessary, the entire carrying amount of the investment
\n
(including goodwill) is tested for impairment in accordance with IAS 36 as a single asset by comparing its recoverable
\n
amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss
\n
recognised is not allocated to any asset, including goodwill that forms part of the carrying amount of the investment.
\n
Any reversal of that impairment loss is recognised in accordance with IAS 36 to the extent that the recoverable
\n
amount of the investment subsequently increases.
\n
Unrealised gains arising from transactions with associates are eliminated to the extent of the Group\u2019s interest in the
\n
entity. Unrealised losses are eliminated to the extent that they do not provide evidence of impairment. When the
\n
Group\u2019s share of losses in an associate equals or exceeds its interest in the associate, the Group does not recognise
\n
further losses unless the Group has incurred obligations or made payments on behalf of the associate. The accounting
\n
policies of associates are amended where necessary to ensure consistency of accounting treatment at Group level.
\n
When the Group ceases to have significant influence, any retained interest in the entity is re-measured to its fair value
\n
at the date when significant influence is lost with the change in carrying amount recognised in the consolidated
\n
income statement. The Group also reclassifies any movements previously recognised in other comprehensive
\nincome to the consolidated income statement. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13205": { "value": "Associates
Associates are entities over which the Group has significant influence but not control, generally accompanying a
\n
shareholding of between 20% and 50% of the voting rights. Significant influence is the power to participate in the
\n
financial and operating policy decisions of the investee but is not control over those policies.
\n
Investments in associates are accounted for using the equity method of accounting and are initially recognised at
\n
cost. On acquisition of the investment in associate, any excess of the cost of the investment over the Group\u2019s share
\n
of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included
\nwithin the carrying value of the investment.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13254": { "value": "Business combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a
\n
business combination is measured at fair value, which is calculated as the sum of the acquisition date fair values
\n
of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and
\n
the equity interests issued by the Group in exchange for control of the acquiree.
\n
Acquisition related costs are recognised in the consolidated income statement as incurred.
\n
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value
\n
at the acquisition date, except that:
\n
\u2022
Deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised
\n
and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;
\n
\u2022
Liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
\n
payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree
\n
are measured in accordance with IFRS 2 Share-based Payment at the acquisition date; and
\n
\u2022
Assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held
\n
for Sale and Discontinued Operations are measured in accordance with that standard.
\n
The fair value of the assets and liabilities are based on valuations using assumptions deemed by management to
\n
be appropriate. Professional valuers are engaged when it is deemed appropriate to do so.
\n
Goodwill represents the excess of the aggregate of the consideration transferred and the amount of any non-
\ncontrolling interest in the acquired entity over the net identifiable assets acquired. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13255": { "value": "Business combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a
\n
business combination is measured at fair value, which is calculated as the sum of the acquisition date fair values
\n
of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and
\n
the equity interests issued by the Group in exchange for control of the acquiree.
\n
Acquisition related costs are recognised in the consolidated income statement as incurred.
\n
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value
\n
at the acquisition date, except that:
\n
\u2022
Deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised
\n
and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;
\n
\u2022
Liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
\n
payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree
\n
are measured in accordance with IFRS 2 Share-based Payment at the acquisition date; and
\n
\u2022
Assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held
\n
for Sale and Discontinued Operations are measured in accordance with that standard.
\n
The fair value of the assets and liabilities are based on valuations using assumptions deemed by management to
\n
be appropriate. Professional valuers are engaged when it is deemed appropriate to do so.
\n
Goodwill represents the excess of the aggregate of the consideration transferred and the amount of any non-
\ncontrolling interest in the acquired entity over the net identifiable assets acquired.", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13256": { "value": "Business combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a
\n
business combination is measured at fair value, which is calculated as the sum of the acquisition date fair values
\n
of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and
\n
the equity interests issued by the Group in exchange for control of the acquiree.
\n
Acquisition related costs are recognised in the consolidated income statement as incurred.
\n
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value
\n
at the acquisition date, except that:
\n
\u2022
Deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised
\n
and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;
\n
\u2022
Liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
\n
payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree
\n
are measured in accordance with IFRS 2 Share-based Payment at the acquisition date; and
\n
\u2022
Assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held
\n
for Sale and Discontinued Operations are measured in accordance with that standard.
\n
The fair value of the assets and liabilities are based on valuations using assumptions deemed by management to
\n
be appropriate. Professional valuers are engaged when it is deemed appropriate to do so.
\n
Goodwill represents the excess of the aggregate of the consideration transferred and the amount of any non-
\ncontrolling interest in the acquired entity over the net identifiable assets acquired.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13300": { "value": "Non-controlling interests
Non-controlling interests represent the portion of the equity of a subsidiary not attributable either directly or
\n
indirectly to the Group and are presented separately in the consolidated income statement and within equity in the
\n
consolidated statement of financial position, distinguished from shareholders\u2019 equity attributable to the owners of
the parent Company.", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13309": { "value": "New standards, amendments and interpretations issued and adopted by the Group in 2022:
The following changes to IFRS became effective for the Group during the year but did not result in material changes
\n
to the Group\u2019s consolidated financial statements:
\n
\u2022
Reference to the Conceptual Framework (Amendments to IFRS 3)
\n
\u2022
Property, Plant and Equipment \u2014 Proceeds before Intended Use (Amendments to IAS 16)
\n
\u2022
Onerous Contracts \u2014 Cost of Fulfilling a Contract (Amendments to IAS 37)
\n
\u2022
Annual Improvements to IFRS Standards 2018-2020", "dimensions": { "concept": "ifrs-full:DescriptionOfInitialApplicationOfStandardsOrInterpretations", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13310": { "value": "New standards, amendments and interpretations issued and adopted by the Group in 2022:
The following changes to IFRS became effective for the Group during the year but did not result in material changes
\n
to the Group\u2019s consolidated financial statements:
\n
\u2022
Reference to the Conceptual Framework (Amendments to IFRS 3)
\n
\u2022
Property, Plant and Equipment \u2014 Proceeds before Intended Use (Amendments to IAS 16)
\n
\u2022
Onerous Contracts \u2014 Cost of Fulfilling a Contract (Amendments to IAS 37)
\n
\u2022
Annual Improvements to IFRS Standards 2018-2020", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13326": { "value": "New and amended standards and interpretations not yet mandatorily effective
The Group has not applied certain new standards, amendments and interpretations to existing standards which are
\n
not yet mandatorily effective and have not yet been endorsed by the UK or by the EU, in some instances:
\n
\u2022
Leases COVID-19 \u2013 Related Rent Concessions beyond 30 June 2021 (Amendments to IFRS 16)
\n
\u2022
Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)
\n
*
\n
\u2022
Classification of Liabilities as Current or Non-Current \u2013 Deferral of Effective Date (Amendments to IAS 1)
\n
*
\n
\u2022
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
\n
\u2022
Definition of Accounting Estimates (Amendments to IAS 8)
\n
\u2022
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)
\n
\u2022
Initial Application of IFRS 17 and IFRS 9 \u2013 Comparative Information (Amendment to IFRS 17)
\n
\u2022
Insurance Contracts \u2013 Amendments to IFRS 17
\n
\u2022
Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4)
\n
\u2022
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
\n
\u2022
Non-current Liabilities with Covenants (Amendments to IAS 1)
\n
*
\nNot yet endorsed by the EU and/or UK ", "dimensions": { "concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13358": { "value": "Revenue recognition
The Group generates substantially all of its revenues from the technology and data processing fees and service fees
\n
that it charges to accommodation providers and the transaction service fees it charges to consumers. The Group
\n
also generates revenues from technology and data processing fees that it charges to providers of other travel
\n
products and associated transaction service fees, from cancellation protection fees, payment protection fees and
\n
from advertising services.
\n
Revenue is recognised at the time the reservation is made in respect of non-refundable commission on the basis
\n
that the Group has met its performance obligations having provided the technology and data processing service at
\n
the time the booking is made. In respect of the free cancellation product, which offers the traveller the opportunity
\n
to make a booking on a free cancellation basis and to receive a refund of their deposit in certain circumstances,
\n
such related revenue is not recognised until the last cancellation date has passed as one party can withdraw from
\n
the contract until such a date has passed, at which point the Group will have met its performance obligation.
Where the Group provides an ancillary service to allow a flexible booking option which allows a booking to be
\n
cancelled for no charge or a new booking to be made, such revenue is deferred, until such time as the related
\n
check-in date has passed or for a six-month period from the date of cancellation, at which time the credit expires.
\n
Where credits are granted to customers for utilisation on future bookings, a provision is recorded against revenue
\n
based on the probability that a credit offering will be used by a customer.
\n
Ancillary advertising and property management technology revenues (Counter) are recognised over the period when
\n
the service is performed as the Group\u2019s performance obligation is met over time. Royalties and commission amounts
\n
earned from the \u201cRoamies\u201d revenue streams are recognised on the trip\u2019s start date, when the Group\u2019s performance
\n
obligations are met. Revenue is measured at the fair value of the consideration received or receivable.
\nRevenue is stated net of rebates, sales taxes and value added taxes. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13388": { "value": "Where credits are granted to customers for utilisation on future bookings, a provision is recorded against revenue based on the probability that a credit offering will be used by a customer.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCustomerLoyaltyProgrammesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13398": { "value": "Leases
The Group leases properties across a number of locations. Rental contracts are typically made for fixed periods
\n
but may have an option to extend. Lease terms are negotiated on an individual basis and contain a wide range of
\n
different terms and conditions.
\n
At inception of a contract, the Group assesses whether a contract is or contains a lease, at inception of the contract.
\n
For contracts where the Group is a lessee, a right-of-use asset is recognised, representing the Group\u2019s right to use
\n
the underlying asset and a lease liability is also recognised for the Group\u2019s obligation to make lease payments during
\n
the lease term. The lease term of each contract is determined as the non-cancellable period of the lease, together
\n
with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods
\n
covered by an option to terminate the lease (break option), if it is reasonably certain not to exercise that option.
\n
For short term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets
\n
(defined as leases with an underlying asset value of \u20ac10,000 or less), the Group recognises the lease payments as
\n
an operating expense on a straight-line basis over the term of the lease.
\n
The right-of-use asset is initially measured at cost and subsequently valued at cost less accumulated depreciation
\n
and impairment losses. It is adjusted where a lease modification results in a remeasurement of the lease liability.
\n
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset.
\n
The depreciation starts at the commencement date of the lease.
\n
Whenever the Group incurs an obligation to restore the underlying asset to the condition required by the terms and
\n
conditions of the lease, a provision is recognised and measured under IAS 37. To the extent that the costs relate to
\n
a right-of-use asset, the costs are included in the related right-of-use asset.
\n
The carrying value of these assets are reviewed at the end of each reporting period to determine whether there is
\n
any indication that the assets have suffered an impairment loss. The Group applies IAS 36 to determine whether a
\n
right-of-use asset is impaired and accounts for any identified impairment loss as described in the \u2018Property, Plant
\n
and Equipment\u2019 policy.
\n
Lease liabilities are measured at the present value of the future lease payments. The lease payments are discounted
\n
using the implicit interest rate in the lease or where this cannot readily be determined the Group use the Group\u2019s
\n
incremental borrowing rate. The incremental borrowing rate depends on the term, currency and start date of the
\n
lease and is determined based on a series of inputs including: the risk-free rate based on government bond rates;
\n
a country-specific risk adjustment and a credit risk adjustment based on bond yields. Subsequently the lease
\n
liability is increased to reflect interest on the lease liability and reduced for payments made. The lease liability is
\n
remeasured for lease modifications or reassessments.
1. Significant accounting policies
continued
\n
Lease payments included in the measurement of the lease liability comprise: (i) Fixed lease payments less any lease
\n
incentives receivable; (ii) Variable lease payments that depend on an index or rate, initially measured using the index
\n
or rate at the commencement date; (iii) The amount expected to be payable by the lessee under residual value
\n
guarantees; (iv) The exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
\n
and (v) Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate
\n
the lease.
\n
The lease liability is presented as a separate line in the consolidated statement of financial position. The lease
\n
liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using
\n
the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
\n
The Group re-measures the lease liability (and makes a corresponding adjustment to the related right-of-use asset)
\n
whenever: (i) The lease term has changed or there is a significant event or change in circumstances resulting in
\n
a change in the assessment of exercise of a purchase option, in which case the lease liability is re-measured by
\n
discounting the revised lease payments using a revised discount rate. (ii) The lease payments change due to changes
\n
in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease
\n
liability is remeasured by discounting the revised lease payments using an unchanged discount rate (iii) A lease
\n
contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease
\n
liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments
\n
using a revised discount rate at the effective date of the modification.
\n
Cash paid on the interest portion of a lease liability is included as part of operating activities in the consolidated cash
\n
flow statement and cash payments for the principal portion of a lease liability are included as part of financing activities.
\n
Payments in relation to short term leases and leases of low value assets that do not meet the criteria to be capitalised
\nunder IFRS 16 are included as part of operating activities in the consolidated cash flow statement.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13469": { "value": "Exceptional items
Exceptional items by their nature and size can make interpretation of the underlying trends in the business more
\n
difficult. Such items may include restructuring, material merger and acquisition costs, profit or loss on disposal or
\n
termination of operations, litigation settlements, legislative changes, material acquisition integration costs and
\n
profit or loss on disposal of investments. Judgement is used by the Group in assessing the particular items which
\n
by virtue of their scale and nature should be disclosed as exceptional items. Where an item that has been classified
\n
as exceptional spans more than one reporting period such as a multi-year restructuring programme, it will also be
\npresented as exceptional in the following period for consistency of presentation.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExceptionalItemsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13480": { "value": "Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
\n
Current tax
\n
The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported
\n
in the consolidated income statement because it excludes items of income or expense that are taxable or deductible
\n
in other years and it further excludes items that are never taxable or deductible. The Group\u2019s liability for current tax
\n
is calculated using tax rates that have been enacted or substantively enacted by the reporting date, and any
\n
adjustment to tax payable in respect of previous years.
\n
A provision is recognised for those matters for which the tax determination is uncertain, but it is considered probable
\n
that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of
\n
the amount expected to become payable. The assessment is based on the judgement of tax professionals within the
\n
Company supported by previous experience in respect of such activities and in certain cases based on specialist
\n
independent tax advice.
Deferred tax
\n
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets
\n
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit
\n
and is accounted for using the liability method. Deferred tax liabilities are generally recognised for all taxable
\n
temporary differences and deferred tax assets are recognised for unused tax losses, unused tax credits and
\n
deductible temporary differences to the extent that it is probable future taxable profits will be available against
\n
which the temporary difference can be utilised.
\n
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and
\n
associates, except where the Group is able to control the reversal of the temporary difference and it is probable that
\n
the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible
\n
temporary differences associated with such investments and interests are only recognised to the extent that it is
\n
probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences
\n
and they are expected to reverse in the foreseeable future.
\n
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is
\n
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
\n
Such reductions are reversed when the probability of future taxable profits improves.
\n
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
\n
against current liabilities and when they relate to income taxes levied by the same taxation authority and the Group
\n
intends to settle its current tax assets and liabilities on a net basis.
\n
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or
\n
the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the balance
\n
sheet date. Deferred tax is charged or credited in the consolidated income statement, except when it relates to
\nitems charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13508": { "value": "Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets
\n
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit
\n
and is accounted for using the liability method. Deferred tax liabilities are generally recognised for all taxable
\n
temporary differences and deferred tax assets are recognised for unused tax losses, unused tax credits and
\n
deductible temporary differences to the extent that it is probable future taxable profits will be available against
\n
which the temporary difference can be utilised.
\n
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and
\n
associates, except where the Group is able to control the reversal of the temporary difference and it is probable that
\n
the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible
\n
temporary differences associated with such investments and interests are only recognised to the extent that it is
\n
probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences
\n
and they are expected to reverse in the foreseeable future.
\n
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is
\n
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
\n
Such reductions are reversed when the probability of future taxable profits improves.
\n
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
\n
against current liabilities and when they relate to income taxes levied by the same taxation authority and the Group
\n
intends to settle its current tax assets and liabilities on a net basis.
\n
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or
\n
the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the balance
\n
sheet date. Deferred tax is charged or credited in the consolidated income statement, except when it relates to
items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13535": { "value": "Foreign currencies
The individual financial statements of each Group Company are presented in the currency of the primary economic
\n
environment in which it operates (its functional currency). For the purpose of the consolidated financial statements,
\n
the results and financial position of each Group Company are expressed in euro, which is the functional currency
\n
of the parent Company and the presentation currency for the consolidated financial statements.
\n
In preparing the financial statements of the individual companies, transactions in currencies other than the entity\u2019s
\n
functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions.
\n
At each reporting date, monetary assets and liabilities denominated in foreign currencies are retranslated at the
\n
rates prevailing on the reporting date.
\n
Non-monetary items (including deferred revenue) carried at fair value that are denominated in foreign currencies
\n
are translated at the rates prevailing at the date when the fair value was determined in accordance with IFRIC 22.
\n
Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
\n
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are
\n
included in the consolidated income statement and consolidated statement of comprehensive income for the period.
\n
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group\u2019s operations
\n
are translated at exchange rates prevailing on the reporting date. Income and expense items are translated at the
\n
average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which
\n
case the exchange rates at the date of transactions are used. Exchange differences arising, if any, are classified
\n
as equity and transferred to the Group\u2019s foreign currency translation reserve.
1. Significant accounting policies
continued
\n
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities
\n
of the foreign entity and translated at the closing rate. Exchange differences arising are recognised in other
\ncomprehensive income. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13575": { "value": "Retirement benefits costs
The Group operates a defined contribution pension scheme. Contributions made in respect of employees\u2019 pension
\n
schemes are charged through the consolidated income statement in the period they become payable. The Group
\n
pays contributions to privately administered pension insurance plans. The Group has no further payment obligations
\n
once the contributions have been paid. The contributions are recognised as employee benefit expense when they
\n
are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the
\nfuture payments is available.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13585": { "value": "Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
\n
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, using the straight-line
\n
method. The estimated useful lives, residual values and depreciation method are reviewed at each year end, with
\n
the effect of any changes in estimate accounted for on a prospective basis.
\n
Right-of-use assets are depreciated over the shorter period of the lease term and the useful life of the underlying asset.
\n
Depreciation is provided on the following basis:
\n
Leasehold property improvements
5-10 years straight line
\n
Computer equipment
3-5 years straight line
\n
Fixtures and equipment
6-7 years straight line
\n
Leasehold improvements are improvements made to buildings leased by the Group when it has the right to use these
\n
leasehold improvements over the term of the lease. The improvements will revert to the lessor at the expiration of
\n
the lease.
\n
The cost of a leasehold improvement is depreciated over the shorter of:
\n
1.
The remaining lease term, or
\n
2.
The estimated useful life of the improvement.
\n
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
\n
expected to arise from the continued use of the asset. The gain or loss arising on the disposal of an asset is
\n
recognised in the consolidated income statement when the asset is derecognised.
\n
In accordance with IAS 36 \u2018Impairment of Assets\u2019
, the carrying amounts of items of property, plant and equipment
\n
are reviewed at each reporting date to determine whether there is any indication of impairment. An impairment loss
\n
is recognised whenever the carrying amount of an asset exceeds its recoverable amount.
\n
Impairment losses are recognised in the consolidated income statement. Following the recognition of an impairment
\n
loss, the depreciation charge applicable to the asset is adjusted prospectively in order to systematically allocate
\nthe revised carrying amount over the remaining useful life.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13588": { "value": "
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, using the straight-line
\n
method. The estimated useful lives, residual values and depreciation method are reviewed at each year end, with
\n
the effect of any changes in estimate accounted for on a prospective basis.
\n
Right-of-use assets are depreciated over the shorter period of the lease term and the useful life of the underlying asset.
\n
Depreciation is provided on the following basis:
\n
Leasehold property improvements
5-10 years straight line
\n
Computer equipment
3-5 years straight line
\n
Fixtures and equipment
6-7 years straight line
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13631": { "value": "Intangible assets
Goodwill
\n
Goodwill is initially measured as the excess of the cost of the business combination over the Group\u2019s interest in the
\n
net fair value of the identifiable assets, liabilities and contingent liabilities of the acquired subsidiary or associate.
\n
Identifiable intangible assets, meeting either the contractual-legal or separability criterion are recognised separately
\n
from goodwill.
\n
Goodwill on acquisition of subsidiaries is included within intangible assets. Goodwill associated with the acquisition
\n
of associates is included within the interest in associates under the equity method of accounting.
\n
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.
\n
Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicated
\n
that the carrying value may be impaired.
\n
For the purposes of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (CGU)
\n
that is expected to benefit from the synergies of the combination.
\n
If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated
\n
first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit on a
\n
pro-rata basis based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised
\n
directly in profit or loss in the consolidated income statement. An impairment loss recognised for goodwill is not
\n
reversed in subsequent periods.
\n
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination
\n
of the gain or loss on disposal.
\n
Other intangible assets
\n
The Group has four classes of other intangible assets: domain names, technology assets, affiliate contracts and
\n
development costs.
\n
Other intangible assets are capitalised at cost and amortised to operating expenses before impairment in the
\n
consolidated income statement on a straight-line basis over their estimated useful lives:
\n
Domain names:
5-20 years
\n
Technology assets:
4 years
\n
Affiliate contracts:
5 years
\n
Capitalised development costs:
2-5 years
\n
Domain names relate to certain domain names, trademarks and technology assets which are carried at cost less
\n
accumulated amortisation and are amortised over their useful life. Technology assets here include the website, App
\n
interfaces, application programming interfaces (APIs) that allow applications to interface and databases which
\n
collectively form the underlying integrated Hostelworld Platform.
\n
Affiliate contracts refers to contracts established with certain affiliate partners whose function is to promote the
\n
website and App. These contracts were identified as a separately identifiable asset in line with IAS 38 \u2018Intangible Assets\u2019
\n
which allow affiliates to get real time access to property, pricing and availability function through affiliate APIs.
\n
Technology assets relates to certain computer software applications stated at cost less accumulated amortisation.
\n
Costs incurred on the acquisition of computer software are capitalised, as are costs directly associated with developing
\n
computer software programmes for internal use, if they meet the recognition criteria of IAS 38 \u2018Intangible Assets\u2019
.
1. Significant accounting policies
continued
\n
Development expenditure in relation to internally-generated intangible assets is capitalised when all of the following
\n
have been demonstrated; the technical feasibility of completing the intangible asset so that it will be available for use;
\n
the intention to complete the project to which the intangible asset relates and to use it or sell it; the ability to use
\n
or sell the intangible asset, how the intangible asset will generate probable future economic benefits; the availability
\n
of adequate technical, financial and other resources to complete the development and to use the intangible asset;
\n
and the ability to measure reliably the expenditure attributable to the intangible asset during its development.
\n
Development activities involve a plan or design for the production of new or substantially improved products or
\n
processes. Directly attributable costs that are capitalised as part of the software product, website or system include
\n
employee costs. Other development expenditures that do not meet these criteria as well as ongoing maintenance
\n
are recognised as an expense as incurred.
\n
An intangible asset is derecognised on disposal or when no future economic benefits are expected to arise from
\n
the continued use or disposal of the asset. The gain or loss arising on the disposal of an asset is recognised in the
\n
consolidated income statement when the asset is derecognised.
\n
The residual value associated with all intangible assets is deemed to be \u20acnil.
\nExpenditure on research activities is recognised as an expense in the period in which it is incurred.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13634": { "value": "Goodwill
Goodwill is initially measured as the excess of the cost of the business combination over the Group\u2019s interest in the
\n
net fair value of the identifiable assets, liabilities and contingent liabilities of the acquired subsidiary or associate.
\n
Identifiable intangible assets, meeting either the contractual-legal or separability criterion are recognised separately
\n
from goodwill.
\n
Goodwill on acquisition of subsidiaries is included within intangible assets. Goodwill associated with the acquisition
\n
of associates is included within the interest in associates under the equity method of accounting.
\n
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.
\n
Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicated
\n
that the carrying value may be impaired.
\n
For the purposes of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (CGU)
\n
that is expected to benefit from the synergies of the combination.
\n
If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated
\n
first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit on a
\n
pro-rata basis based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised
\n
directly in profit or loss in the consolidated income statement. An impairment loss recognised for goodwill is not
\n
reversed in subsequent periods.
\n
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination
\nof the gain or loss on disposal.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13656": { "value": "Other intangible assets
The Group has four classes of other intangible assets: domain names, technology assets, affiliate contracts and
\n
development costs.
\n
Other intangible assets are capitalised at cost and amortised to operating expenses before impairment in the
\n
consolidated income statement on a straight-line basis over their estimated useful lives:
\n
Domain names:
5-20 years
\n
Technology assets:
4 years
\n
Affiliate contracts:
5 years
\n
Capitalised development costs:
2-5 years
\n
Domain names relate to certain domain names, trademarks and technology assets which are carried at cost less
\n
accumulated amortisation and are amortised over their useful life. Technology assets here include the website, App
\n
interfaces, application programming interfaces (APIs) that allow applications to interface and databases which
\n
collectively form the underlying integrated Hostelworld Platform.
\n
Affiliate contracts refers to contracts established with certain affiliate partners whose function is to promote the
\n
website and App. These contracts were identified as a separately identifiable asset in line with IAS 38 \u2018Intangible Assets\u2019
\n
which allow affiliates to get real time access to property, pricing and availability function through affiliate APIs.
\n
Technology assets relates to certain computer software applications stated at cost less accumulated amortisation.
\n
Costs incurred on the acquisition of computer software are capitalised, as are costs directly associated with developing
\n
computer software programmes for internal use, if they meet the recognition criteria of IAS 38 \u2018Intangible Assets\u2019
.
1. Significant accounting policies
continued
\n
Development expenditure in relation to internally-generated intangible assets is capitalised when all of the following
\n
have been demonstrated; the technical feasibility of completing the intangible asset so that it will be available for use;
\n
the intention to complete the project to which the intangible asset relates and to use it or sell it; the ability to use
\n
or sell the intangible asset, how the intangible asset will generate probable future economic benefits; the availability
\n
of adequate technical, financial and other resources to complete the development and to use the intangible asset;
\n
and the ability to measure reliably the expenditure attributable to the intangible asset during its development.
\n
Development activities involve a plan or design for the production of new or substantially improved products or
\n
processes. Directly attributable costs that are capitalised as part of the software product, website or system include
\n
employee costs. Other development expenditures that do not meet these criteria as well as ongoing maintenance
\n
are recognised as an expense as incurred.
\n
An intangible asset is derecognised on disposal or when no future economic benefits are expected to arise from
\n
the continued use or disposal of the asset. The gain or loss arising on the disposal of an asset is recognised in the
\n
consolidated income statement when the asset is derecognised.
\n
The residual value associated with all intangible assets is deemed to be \u20acnil.
\nExpenditure on research activities is recognised as an expense in the period in which it is incurred.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13716": { "value": "Impairment of tangible and intangible assets other than goodwill
At the end of each reporting period, the Directors review the carrying amounts of the Group\u2019s tangible and intangible
\n
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such
\n
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment
\n
loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Directors estimate
\n
the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent
\n
basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or
\n
otherwise they are allocated to the smallest Group of cash-generating units for which a reasonable and consistent
\n
allocation basis can be identified.
\n
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment
\n
at least annually, and whenever there is an indication that the asset may be impaired.
\n
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the
\n
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
\n
market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an
\n
asset (or a cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset
\n
(or the cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately
\n
in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is
\n
treated as a revaluation decrease.
\n
Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is
\n
increased to the revised estimate of its recoverable amount. The increased carrying amount cannot exceed the
\n
carrying amount that would have been determined had no impairment loss been recognised for the asset (or the
\n
cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss,
\n
unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is
\ntreated as a revaluation increase.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13717": { "value": "Impairment of tangible and intangible assets other than goodwill
At the end of each reporting period, the Directors review the carrying amounts of the Group\u2019s tangible and intangible
\n
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such
\n
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment
\n
loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Directors estimate
\n
the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent
\n
basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or
\n
otherwise they are allocated to the smallest Group of cash-generating units for which a reasonable and consistent
\n
allocation basis can be identified.
\n
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment
\n
at least annually, and whenever there is an indication that the asset may be impaired.
\n
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the
\n
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
\n
market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an
\n
asset (or a cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset
\n
(or the cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately
\n
in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is
\n
treated as a revaluation decrease.
\n
Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is
\n
increased to the revised estimate of its recoverable amount. The increased carrying amount cannot exceed the
\n
carrying amount that would have been determined had no impairment loss been recognised for the asset (or the
\n
cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss,
\n
unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is
\ntreated as a revaluation increase.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13718": { "value": "Impairment of tangible and intangible assets other than goodwill
At the end of each reporting period, the Directors review the carrying amounts of the Group\u2019s tangible and intangible
\n
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such
\n
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment
\n
loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Directors estimate
\n
the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent
\n
basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or
\n
otherwise they are allocated to the smallest Group of cash-generating units for which a reasonable and consistent
\n
allocation basis can be identified.
\n
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment
\n
at least annually, and whenever there is an indication that the asset may be impaired.
\n
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the
\n
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
\n
market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an
\n
asset (or a cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset
\n
(or the cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately
\n
in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is
\n
treated as a revaluation decrease.
\n
Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is
\n
increased to the revised estimate of its recoverable amount. The increased carrying amount cannot exceed the
\n
carrying amount that would have been determined had no impairment loss been recognised for the asset (or the
\n
cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss,
\n
unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is
\ntreated as a revaluation increase.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13760": { "value": "Financial instruments
Financial assets and financial liabilities are recognised in the Group\u2019s consolidated statement of financial position
\n
when the Group becomes a party to the contractual provisions of the instrument.
\n
Financial assets and liabilities are initially measured at fair value plus transaction costs, except for those classified
\n
as fair value through profit or loss, which are initially measured at fair value. The fair value of financial assets and
\n
liabilities denominated in a foreign currency is determined in that foreign currency and translated at the spot rate
\n
at the end of the reporting period.
\n
(a) Classification of financial assets
\n
Trade and other receivables
\n
Trade and other receivables are stated initially at their transaction price and subsequently at amortised cost, less
\n
any expected credit loss provision. The Group applies the simplified approach to measuring expected credit losses
\n
which uses a lifetime expected credit loss allowance for all trade receivables.
\n
(b) Expected credit loss of financial assets
\n
The Group always recognises lifetime expected credit losses (ECLs) for trade receivables estimated using a provision
\n
matrix based on the Group\u2019s historical credit loss experience, adjusted for factors that are specific to the debtors,
\n
general economic conditions and an assessment of both the current as well as the forecast direction of conditions
\n
at the reporting date, including time value of money where appropriate.
\n
Lifetime ECLs represents the expected credit losses that will result from all possible default events over the expected
\n
life of a financial instrument. ECLs are reported in the consolidated income statement. An event of default occurs
\n
where there is failure by a debtor to fulfil an obligation and there is no likely recourse available. For example, if a
\n
hostel has gone out of business.
\n
(c) Classification of financial liabilities
\n
Trade and other payables
\n
Trade and other payables are initially recorded at fair value, which is usually the original invoiced amount, and
\n
subsequently carried at amortised cost. Liabilities are derecognised when the obligation under the liability is
\n
discharged, cancelled or expires.
\n
Loans and borrowings
\n
All loans and borrowings are initially recognised at fair value of the proceeds received less any directly attributable
\n
transaction costs. Transaction costs include fees and commission paid to agents, advisers brokers and dealers. After
\n
initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
\n
effective interest method being the amount at which the financial liability is measured at initial recognition minus any
\n
principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference
\n
between that initial amount and the maturity amount. Borrowings are de-recognised when the Group\u2019s obligations
\n
specified in the contracts expire, are discharged or cancelled. Borrowings are classified as current liabilities unless
\n
the Group has an unconditional right to defer settlement of the liability for at least 12 months after the financial
\n
position date.
\n
Other financial liabilities
\n
Financial liabilities are recognised initially at fair value and are subsequently stated at amortised cost using the
\n
effective interest method. The effective interest method is a method for calculating the amortised cost of a financial
\n
liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
\n
discounts estimated future cash payments through the expected life of the financial liability to the amortised cost
\n
of a financial liability.
\n
Financial liabilities are classified as current liabilities unless the Group has an unconditional right to defer settlement
\n
of the liability for at least 12 months after the reporting date. The Directors determine the classification of the Group\u2019s
\n
financial liabilities at initial recognition.
1. Significant accounting policies
continued
\n
(d) Cash and cash equivalents
\n
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly
\n
liquid investments with original maturities of three months or less. Restricted cash and cash equivalent balances
\nare those which meet the definition of cash and cash equivalents but are not available for use by the Group.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13769": { "value": "(a) Classification of financial assets
Trade and other receivables
\n
Trade and other receivables are stated initially at their transaction price and subsequently at amortised cost, less
\n
any expected credit loss provision. The Group applies the simplified approach to measuring expected credit losses
\nwhich uses a lifetime expected credit loss allowance for all trade receivables.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13772": { "value": "Trade and other receivables
Trade and other receivables are stated initially at their transaction price and subsequently at amortised cost, less
\n
any expected credit loss provision. The Group applies the simplified approach to measuring expected credit losses
which uses a lifetime expected credit loss allowance for all trade receivables.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13789": { "value": "(c) Classification of financial liabilities
Trade and other payables
\n
Trade and other payables are initially recorded at fair value, which is usually the original invoiced amount, and
\n
subsequently carried at amortised cost. Liabilities are derecognised when the obligation under the liability is
\n
discharged, cancelled or expires.
\n
Loans and borrowings
\n
All loans and borrowings are initially recognised at fair value of the proceeds received less any directly attributable
\n
transaction costs. Transaction costs include fees and commission paid to agents, advisers brokers and dealers. After
\n
initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
\n
effective interest method being the amount at which the financial liability is measured at initial recognition minus any
\n
principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference
\n
between that initial amount and the maturity amount. Borrowings are de-recognised when the Group\u2019s obligations
\n
specified in the contracts expire, are discharged or cancelled. Borrowings are classified as current liabilities unless
\n
the Group has an unconditional right to defer settlement of the liability for at least 12 months after the financial
\n
position date.
\n
Other financial liabilities
\n
Financial liabilities are recognised initially at fair value and are subsequently stated at amortised cost using the
\n
effective interest method. The effective interest method is a method for calculating the amortised cost of a financial
\n
liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
\n
discounts estimated future cash payments through the expected life of the financial liability to the amortised cost
\n
of a financial liability.
\n
Financial liabilities are classified as current liabilities unless the Group has an unconditional right to defer settlement
\n
of the liability for at least 12 months after the reporting date. The Directors determine the classification of the Group\u2019s
\nfinancial liabilities at initial recognition.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13792": { "value": "Trade and other payables
Trade and other payables are initially recorded at fair value, which is usually the original invoiced amount, and
\n
subsequently carried at amortised cost. Liabilities are derecognised when the obligation under the liability is
\ndischarged, cancelled or expires.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13799": { "value": "Loans and borrowings
All loans and borrowings are initially recognised at fair value of the proceeds received less any directly attributable
\n
transaction costs. Transaction costs include fees and commission paid to agents, advisers brokers and dealers. After
\n
initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
\n
effective interest method being the amount at which the financial liability is measured at initial recognition minus any
\n
principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference
\n
between that initial amount and the maturity amount. Borrowings are de-recognised when the Group\u2019s obligations
\n
specified in the contracts expire, are discharged or cancelled. Borrowings are classified as current liabilities unless
\n
the Group has an unconditional right to defer settlement of the liability for at least 12 months after the financial
\nposition date.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13800": { "value": "Loans and borrowings
All loans and borrowings are initially recognised at fair value of the proceeds received less any directly attributable
\n
transaction costs. Transaction costs include fees and commission paid to agents, advisers brokers and dealers. After
\n
initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
\n
effective interest method being the amount at which the financial liability is measured at initial recognition minus any
\n
principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference
\n
between that initial amount and the maturity amount. Borrowings are de-recognised when the Group\u2019s obligations
\n
specified in the contracts expire, are discharged or cancelled. Borrowings are classified as current liabilities unless
\n
the Group has an unconditional right to defer settlement of the liability for at least 12 months after the financial
\nposition date.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13801": { "value": "Loans and borrowings
All loans and borrowings are initially recognised at fair value of the proceeds received less any directly attributable
\n
transaction costs. Transaction costs include fees and commission paid to agents, advisers brokers and dealers. After
\n
initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
\n
effective interest method being the amount at which the financial liability is measured at initial recognition minus any
\n
principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference
\n
between that initial amount and the maturity amount. Borrowings are de-recognised when the Group\u2019s obligations
\n
specified in the contracts expire, are discharged or cancelled. Borrowings are classified as current liabilities unless
\n
the Group has an unconditional right to defer settlement of the liability for at least 12 months after the financial
\nposition date.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13843": { "value": "(d) Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly
\n
liquid investments with original maturities of three months or less. Restricted cash and cash equivalent balances
are those which meet the definition of cash and cash equivalents but are not available for use by the Group.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13844": { "value": "(d) Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly
\n
liquid investments with original maturities of three months or less. Restricted cash and cash equivalent balances
are those which meet the definition of cash and cash equivalents but are not available for use by the Group.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13854": { "value": "Recognition of warrants
Warrant reserve is recorded at the fair value of warrants issued. Warrants have been recognised as equity instruments
\n
as each warrant issued entitles the holder to a fixed number of ordinary shares in exchange for a fixed exchange
\nprice of \u20ac0.01 per ordinary equity share.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForWarrantsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13861": { "value": "Dividends
Final dividends are recorded in the Group\u2019s financial statements in the period in which they are approved by the
\nCompany\u2019s shareholders. Interim dividends are recorded in the period in which they are paid.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13867": { "value": "Share based payments
Equity settled share-based payments to employees are measured at the fair value of the equity instruments at the
\n
grant date. The fair value excludes the effect of non-market-based vesting conditions. Details regarding the
\n
determination of the fair value of equity-settled share-based transactions are set out in note 22.
\n
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-
\n
line basis over the vesting period, based on the Group\u2019s estimate of equity instruments that will eventually vest. At
\n
each reporting date, the Group revises its estimate of the number of equity instruments expected to vest as a result
\n
of the effect of non-market-based vesting conditions. The impact of the revision of the original estimates, if any, is
\n
recognised in the consolidated income statement such that the cumulative expense reflects the revised estimate,
\n
with a corresponding adjustment to the share-based payment reserve.
\n
For cash settled share-based payments, a liability is recognised for the services acquired, measured initially at the fair
\n
value of the liability. At each reporting date until the liability is settled, and at the date of settlement, the fair value of
\n
the liability is re-measured, with any changes in fair value recognised in the consolidated income statement for the year.
\n
In assessing any modification of employee share-based payment transactions, the Group assesses if the change
\n
in the terms and conditions has an effect on the amount recognised which depends on whether the fair value of
\n
the new instruments is greater than the fair value of the original instruments. Modifications that increase the fair
\nvalue of the grant result in recognition of the incremental fair value measured at the date of modification.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13887": { "value": "Earnings Per Share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated
\n
by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares
\n
outstanding during the period. Diluted loss per share is computed by adjusting the weighted average number of
\nordinary shares in issue to assume conversion of all potential dilutive ordinary shares.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13895": { "value": "Government Grants
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions
\n
attaching to them and that the grants will be received. Government grants that are receivable as compensation for
\n
expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no
\n
future related costs are recognised in profit or loss in the period in which they become receivable. Amounts are
\n
recognised as income over the periods necessary to match them with the related costs and are deducted in
reporting the related expense.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13915": { "value": "2. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group\u2019s accounting policies, the Directors are required to make judgements (other than those
\n
involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions
\n
about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates
\n
and associated assumptions are based on historical experience and other factors considered relevant. Actual results
\n
may differ from these estimates.
\n
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
\n
recognised in the year in which the estimate is revised if the revision affects only that year, or in the year of the
\n
revision and future years if the revision affects both current and future years.
\n
(a) Critical judgements in applying the Group\u2019s accounting policies:
\n
The following are the critical judgements, apart from those involving estimations (which are presented separately
\n
below), that the directors have made in the process of applying the Group\u2019s accounting policies and that have the
\n
most significant effect on the amounts recognised in financial statements.
\n
Capitalisation of development costs
\n
Development costs are capitalised when the criteria set out in paragraph 57 of IAS 38 Intangible assets have been
\n
demonstrated as disclosed in our accounting policy disclosed on page 182. Total additions amounted to \u20ac4,511k
\n
(2021: \u20ac4,397k) and carrying value at the balance sheet date totalled \u20ac6,800k
(2021: \u20ac5,073k).
\n
Determining the amount to be capitalised requires management to make judgements about each asset to ensure
\n
that they meet the requirements. The most critical judgement relates to the projects ability to generate future
\n
economic benefits. Business cases have been prepared in line with our Board approved 2023 budget and five-year
\n
outlook. The main projects capitalised in the current year relate to the \u2018Social\u2019 strategy and platform modernisation
\n
which form both form a key part of the Group\u2019s growth strategy. Should trading deteriorate to COVID-19 volumes it
\n
is reasonably possible within the next financial year that development costs may require a material adjustment to
\n
their carrying amount.
\n
Accounting for exceptional items
\n
Exceptional items by their nature and size can make interpretation of the underlying trends in the business more
\n
difficult. Judgement is used in assessing the particular items which by virtue of their scale and nature should be
\n
disclosed as exceptional items. Circumstances that the Group believe would give rise to exceptional items for
\n
separate disclosure are outlined in the exceptional accounting policy on page 178. Current year exceptional costs
\n
amounted to \u20ac835k (2021: \u20ac588k).
\n
(b) Key sources of estimation uncertainty:
\n
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period
\n
that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
\n
within the next financial year, are discussed below.
\n
Deferred tax asset recognition and recoverability of deferred tax assets
\n
Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available in future
\n
periods. Recognition of deferred tax assets is reliant on detailed forecast information regarding the future performance
\n
of business. The extent to which it is probable that taxable profits will be available in future periods is an estimate
\n
assessed based on the budgets and forecasts prepared by the Group. At 31 December 2022 the carrying value of
\n
deferred tax assets amounted to \u20ac9,174k (2021: \u20ac8,352k).
2. Critical accounting judgements and key sources of estimation uncertainty
continued
\n
At 31 December 2022 the directors performed a review of the recoverability of the asset based on the Board approved
\n
2023 budget and further four-year outlook which covers a period to 31 December 2027. The Group does not have
\n
any binding fixed term contracts in place which guarantee profitability. The Group has made a loss in 2021 and 2022
\n
as a direct impact of COVID-19 and are projected to do so in 2023 as the Group continues to recover as final borders
\n
reopen in Asia. The budget and further four-year outlook includes an assumption of returning to profit in 2024.
\n
The recognition and recoverability of the deferred tax asset is based on the Group\u2019s ability to generate sufficient
\n
taxable profits in future financial years. The board approved budget for 2021 set out a loss before tax of \u20ac22,525k
\n
for 2022 compared to an actual loss of \u20ac17,912k as set out in the Income Statement. Improved performance was
\n
driven by accelerated recovery levels by market and the success of our social strategy which resulted in a higher
\n
volume of bookings from low cost channels.
\n
As part of our recoverability analysis, the Group has performed a sensitivity analysis on taxable profits growth over the
\n
next five years. The Group\u2019s forecasted taxable profits would have to decline by over 10% over the next five years
\n
before there is a risk that the deferred tax asset is not fully recovered in that period.
\n
Carrying value of goodwill and intangible assets
\n
The Directors assess annually whether goodwill has suffered any impairment, in accordance with the relevant
\n
accounting policy and intangible assets are assessed for possible impairment where indicators of impairment exist.
\n
The recoverable amounts of cash-generating units (CGUs) are determined based on the higher of fair value less
\n
costs of disposal or value in use calculations. The carrying amount of goodwill at 31 December 2022 amounted to
\n
\u20ac17,848k (2021: \u20ac17,848k) and the carrying amount of domain names amounted to \u20ac48,668k (2021: \u20ac56,410k).
\n
Based on work performed and the headroom identified in the models no impairment was necessary in 2022 for
\n
goodwill or domain names.
\n
Management estimation is required in forecasting future cash flows of cash-generating units including incorporating
\n
the impact of recovery of the business from COVID-19, the discount rates applied to these cashflows, the expected
\n
long-term growth rate of the applicable business and terminal values. The area of estimation of most risk relates to
\n
certainty of delivering the growth rates forecasted from the recovery of the business and from our strategy.
\nFurther details on the assumptions used, the impact of climate change and sensitivity analysis are set out in note 10.", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13916": { "value": "2. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group\u2019s accounting policies, the Directors are required to make judgements (other than those
\n
involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions
\n
about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates
\n
and associated assumptions are based on historical experience and other factors considered relevant. Actual results
\n
may differ from these estimates.
\n
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
\n
recognised in the year in which the estimate is revised if the revision affects only that year, or in the year of the
\n
revision and future years if the revision affects both current and future years.
\n
(a) Critical judgements in applying the Group\u2019s accounting policies:
\n
The following are the critical judgements, apart from those involving estimations (which are presented separately
\n
below), that the directors have made in the process of applying the Group\u2019s accounting policies and that have the
\n
most significant effect on the amounts recognised in financial statements.
\n
Capitalisation of development costs
\n
Development costs are capitalised when the criteria set out in paragraph 57 of IAS 38 Intangible assets have been
\n
demonstrated as disclosed in our accounting policy disclosed on page 182. Total additions amounted to \u20ac4,511k
\n
(2021: \u20ac4,397k) and carrying value at the balance sheet date totalled \u20ac6,800k
(2021: \u20ac5,073k).
\n
Determining the amount to be capitalised requires management to make judgements about each asset to ensure
\n
that they meet the requirements. The most critical judgement relates to the projects ability to generate future
\n
economic benefits. Business cases have been prepared in line with our Board approved 2023 budget and five-year
\n
outlook. The main projects capitalised in the current year relate to the \u2018Social\u2019 strategy and platform modernisation
\n
which form both form a key part of the Group\u2019s growth strategy. Should trading deteriorate to COVID-19 volumes it
\n
is reasonably possible within the next financial year that development costs may require a material adjustment to
\n
their carrying amount.
\n
Accounting for exceptional items
\n
Exceptional items by their nature and size can make interpretation of the underlying trends in the business more
\n
difficult. Judgement is used in assessing the particular items which by virtue of their scale and nature should be
\n
disclosed as exceptional items. Circumstances that the Group believe would give rise to exceptional items for
\n
separate disclosure are outlined in the exceptional accounting policy on page 178. Current year exceptional costs
\n
amounted to \u20ac835k (2021: \u20ac588k).
\n
(b) Key sources of estimation uncertainty:
\n
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period
\n
that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
\n
within the next financial year, are discussed below.
\n
Deferred tax asset recognition and recoverability of deferred tax assets
\n
Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available in future
\n
periods. Recognition of deferred tax assets is reliant on detailed forecast information regarding the future performance
\n
of business. The extent to which it is probable that taxable profits will be available in future periods is an estimate
\n
assessed based on the budgets and forecasts prepared by the Group. At 31 December 2022 the carrying value of
\n
deferred tax assets amounted to \u20ac9,174k (2021: \u20ac8,352k).
2. Critical accounting judgements and key sources of estimation uncertainty
continued
\n
At 31 December 2022 the directors performed a review of the recoverability of the asset based on the Board approved
\n
2023 budget and further four-year outlook which covers a period to 31 December 2027. The Group does not have
\n
any binding fixed term contracts in place which guarantee profitability. The Group has made a loss in 2021 and 2022
\n
as a direct impact of COVID-19 and are projected to do so in 2023 as the Group continues to recover as final borders
\n
reopen in Asia. The budget and further four-year outlook includes an assumption of returning to profit in 2024.
\n
The recognition and recoverability of the deferred tax asset is based on the Group\u2019s ability to generate sufficient
\n
taxable profits in future financial years. The board approved budget for 2021 set out a loss before tax of \u20ac22,525k
\n
for 2022 compared to an actual loss of \u20ac17,912k as set out in the Income Statement. Improved performance was
\n
driven by accelerated recovery levels by market and the success of our social strategy which resulted in a higher
\n
volume of bookings from low cost channels.
\n
As part of our recoverability analysis, the Group has performed a sensitivity analysis on taxable profits growth over the
\n
next five years. The Group\u2019s forecasted taxable profits would have to decline by over 10% over the next five years
\n
before there is a risk that the deferred tax asset is not fully recovered in that period.
\n
Carrying value of goodwill and intangible assets
\n
The Directors assess annually whether goodwill has suffered any impairment, in accordance with the relevant
\n
accounting policy and intangible assets are assessed for possible impairment where indicators of impairment exist.
\n
The recoverable amounts of cash-generating units (CGUs) are determined based on the higher of fair value less
\n
costs of disposal or value in use calculations. The carrying amount of goodwill at 31 December 2022 amounted to
\n
\u20ac17,848k (2021: \u20ac17,848k) and the carrying amount of domain names amounted to \u20ac48,668k (2021: \u20ac56,410k).
\n
Based on work performed and the headroom identified in the models no impairment was necessary in 2022 for
\n
goodwill or domain names.
\n
Management estimation is required in forecasting future cash flows of cash-generating units including incorporating
\n
the impact of recovery of the business from COVID-19, the discount rates applied to these cashflows, the expected
\n
long-term growth rate of the applicable business and terminal values. The area of estimation of most risk relates to
\n
certainty of delivering the growth rates forecasted from the recovery of the business and from our strategy.
\nFurther details on the assumptions used, the impact of climate change and sensitivity analysis are set out in note 10.", "dimensions": { "concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f13950": { "value": "(b) Key sources of estimation uncertainty:
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period
\n
that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
\n
within the next financial year, are discussed below.
\n
Deferred tax asset recognition and recoverability of deferred tax assets
\n
Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available in future
\n
periods. Recognition of deferred tax assets is reliant on detailed forecast information regarding the future performance
\n
of business. The extent to which it is probable that taxable profits will be available in future periods is an estimate
\n
assessed based on the budgets and forecasts prepared by the Group. At 31 December 2022 the carrying value of
\n
deferred tax assets amounted to \u20ac9,174k (2021: \u20ac8,352k).
2. Critical accounting judgements and key sources of estimation uncertainty
continued
\n
At 31 December 2022 the directors performed a review of the recoverability of the asset based on the Board approved
\n
2023 budget and further four-year outlook which covers a period to 31 December 2027. The Group does not have
\n
any binding fixed term contracts in place which guarantee profitability. The Group has made a loss in 2021 and 2022
\n
as a direct impact of COVID-19 and are projected to do so in 2023 as the Group continues to recover as final borders
\n
reopen in Asia. The budget and further four-year outlook includes an assumption of returning to profit in 2024.
\n
The recognition and recoverability of the deferred tax asset is based on the Group\u2019s ability to generate sufficient
\n
taxable profits in future financial years. The board approved budget for 2021 set out a loss before tax of \u20ac22,525k
\n
for 2022 compared to an actual loss of \u20ac17,912k as set out in the Income Statement. Improved performance was
\n
driven by accelerated recovery levels by market and the success of our social strategy which resulted in a higher
\n
volume of bookings from low cost channels.
\n
As part of our recoverability analysis, the Group has performed a sensitivity analysis on taxable profits growth over the
\n
next five years. The Group\u2019s forecasted taxable profits would have to decline by over 10% over the next five years
\n
before there is a risk that the deferred tax asset is not fully recovered in that period.
\n
Carrying value of goodwill and intangible assets
\n
The Directors assess annually whether goodwill has suffered any impairment, in accordance with the relevant
\n
accounting policy and intangible assets are assessed for possible impairment where indicators of impairment exist.
\n
The recoverable amounts of cash-generating units (CGUs) are determined based on the higher of fair value less
\n
costs of disposal or value in use calculations. The carrying amount of goodwill at 31 December 2022 amounted to
\n
\u20ac17,848k (2021: \u20ac17,848k) and the carrying amount of domain names amounted to \u20ac48,668k (2021: \u20ac56,410k).
\n
Based on work performed and the headroom identified in the models no impairment was necessary in 2022 for
\n
goodwill or domain names.
\n
Management estimation is required in forecasting future cash flows of cash-generating units including incorporating
\n
the impact of recovery of the business from COVID-19, the discount rates applied to these cashflows, the expected
\n
long-term growth rate of the applicable business and terminal values. The area of estimation of most risk relates to
\n
certainty of delivering the growth rates forecasted from the recovery of the business and from our strategy.
\nFurther details on the assumptions used, the impact of climate change and sensitivity analysis are set out in note 10.", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14008": { "value": "3. Revenue & segmental analysis
The Group is managed as a single business unit which provides software and data processing services that facilitate
\n
hostel, hotel and other accommodation worldwide, including ancillary on-line advertising revenue.
\n
The Directors determine, and present operating segments based on the information that is provided internally to the
\n
Chief Executive Officer, who is the Company\u2019s Chief Operating Decision Maker (CODM). When making resource
\n
allocation decisions, the CODM evaluates booking numbers and average booking value. The objective in making
\n
resource allocation decisions is to maximise consolidated financial results.
\n
The CODM assesses the performance of the business based on the consolidated adjusted loss after tax of the Group
\n
for the year. This measure excludes the effects of certain income and expense items, which are unusual by virtue of
\n
their size and incidence, in the context of the Group\u2019s ongoing core operations, such as the impairment of intangible
\n
assets and one-off items of expenditure.
\n
All revenue is derived wholly from external customers and is generated from a large number of customers, none of
\n
whom is individually significant.
\n
The Group\u2019s major revenue-generating asset class comprises its software and data processing services and is directly
\n
attributable to its reportable segment operations. In addition, as the Group is managed as a single business unit,
\n
all other assets and liabilities have been allocated to the Group\u2019s single reportable segment. There have been no
\n
changes to the basis of segmentation or the measurement basis for the segment profit or loss.
Revenue split by country, is dependent on the location of the hostel or property. No single country, year on year,
\n
contributes 10% or more of total revenue. Our top five countries year on year account for 38% of overall revenue
\n
(2021: 43%) relating to USA and key European destinations. Revenue split by continent is presented as follows
:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Europe
45,936
10,713
\n
Americas
15,719
5,213
\n
Asia, Africa and Oceania
8,035
975
\n
Total revenue
69,690
16,901
\n
Revenue arising within Ireland, the country of domicile, amounted to \u20ac1,795k (2021: \u20ac492k).
\n
Disaggregation of revenue is presented as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Technology and data processing fees
69,363
16,849
\n
Advertising revenue and ancillary services
327
52
\n
Total revenue
69,690
16,901
\n
In the year ended 31 December 2022, the Group generated 100% (2021: 100%) of its revenues from the technology
\n
and data processing fees that it charged to accommodation providers.
\n
As at 31 December 2022, \u20ac3,005k of revenue relating to free cancellation bookings has been deferred (2021: \u20ac1,020k).
\n
Revenue is recognised at the time the reservation is made in respect of non-refundable commission on the basis that
\n
the Group has met its performance obligations at the time the booking is made. In respect of the free cancellation
\n
product, which offers the traveller the opportunity to make a booking on a free cancellation basis and to receive a
\n
refund of their deposit in certain circumstances, such related revenue is not recognised until the last cancellation
\n
date has passed as one party can withdraw from the contract until such a date has passed. Deferred revenue is
\n
expected to be recognised within twelve months of initial recognition.
\n
Advertising revenue and revenue generated from other services are recognised over the period when the service
\n
is performed.
\n
The Group\u2019s non-current assets are located in Ireland, Australia, the United Kingdom, Portugal, and China. Non-
\n
current assets are disaggregated as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Total non-current assets
84,997
89,221
\n
Analysed as:
\n
Ireland
83,825
87,799
\n
Australia
980
1,186
\n
United Kingdom
20
32
\n
Portugal
156
165
\n
China
16
39", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14009": { "value": "3. Revenue & segmental analysis
The Group is managed as a single business unit which provides software and data processing services that facilitate
\n
hostel, hotel and other accommodation worldwide, including ancillary on-line advertising revenue.
\n
The Directors determine, and present operating segments based on the information that is provided internally to the
\n
Chief Executive Officer, who is the Company\u2019s Chief Operating Decision Maker (CODM). When making resource
\n
allocation decisions, the CODM evaluates booking numbers and average booking value. The objective in making
\n
resource allocation decisions is to maximise consolidated financial results.
\n
The CODM assesses the performance of the business based on the consolidated adjusted loss after tax of the Group
\n
for the year. This measure excludes the effects of certain income and expense items, which are unusual by virtue of
\n
their size and incidence, in the context of the Group\u2019s ongoing core operations, such as the impairment of intangible
\n
assets and one-off items of expenditure.
\n
All revenue is derived wholly from external customers and is generated from a large number of customers, none of
\n
whom is individually significant.
\n
The Group\u2019s major revenue-generating asset class comprises its software and data processing services and is directly
\n
attributable to its reportable segment operations. In addition, as the Group is managed as a single business unit,
\n
all other assets and liabilities have been allocated to the Group\u2019s single reportable segment. There have been no
\n
changes to the basis of segmentation or the measurement basis for the segment profit or loss.
Revenue split by country, is dependent on the location of the hostel or property. No single country, year on year,
\n
contributes 10% or more of total revenue. Our top five countries year on year account for 38% of overall revenue
\n
(2021: 43%) relating to USA and key European destinations. Revenue split by continent is presented as follows
:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Europe
45,936
10,713
\n
Americas
15,719
5,213
\n
Asia, Africa and Oceania
8,035
975
\n
Total revenue
69,690
16,901
\n
Revenue arising within Ireland, the country of domicile, amounted to \u20ac1,795k (2021: \u20ac492k).
\n
Disaggregation of revenue is presented as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Technology and data processing fees
69,363
16,849
\n
Advertising revenue and ancillary services
327
52
\n
Total revenue
69,690
16,901
\n
In the year ended 31 December 2022, the Group generated 100% (2021: 100%) of its revenues from the technology
\n
and data processing fees that it charged to accommodation providers.
\n
As at 31 December 2022, \u20ac3,005k of revenue relating to free cancellation bookings has been deferred (2021: \u20ac1,020k).
\n
Revenue is recognised at the time the reservation is made in respect of non-refundable commission on the basis that
\n
the Group has met its performance obligations at the time the booking is made. In respect of the free cancellation
\n
product, which offers the traveller the opportunity to make a booking on a free cancellation basis and to receive a
\n
refund of their deposit in certain circumstances, such related revenue is not recognised until the last cancellation
\n
date has passed as one party can withdraw from the contract until such a date has passed. Deferred revenue is
\n
expected to be recognised within twelve months of initial recognition.
\n
Advertising revenue and revenue generated from other services are recognised over the period when the service
\n
is performed.
\n
The Group\u2019s non-current assets are located in Ireland, Australia, the United Kingdom, Portugal, and China. Non-
\n
current assets are disaggregated as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Total non-current assets
84,997
89,221
\n
Analysed as:
\n
Ireland
83,825
87,799
\n
Australia
980
1,186
\n
United Kingdom
20
32
\n
Portugal
156
165
\n
China
16
39", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14010": { "value": "3. Revenue & segmental analysis
The Group is managed as a single business unit which provides software and data processing services that facilitate
\n
hostel, hotel and other accommodation worldwide, including ancillary on-line advertising revenue.
\n
The Directors determine, and present operating segments based on the information that is provided internally to the
\n
Chief Executive Officer, who is the Company\u2019s Chief Operating Decision Maker (CODM). When making resource
\n
allocation decisions, the CODM evaluates booking numbers and average booking value. The objective in making
\n
resource allocation decisions is to maximise consolidated financial results.
\n
The CODM assesses the performance of the business based on the consolidated adjusted loss after tax of the Group
\n
for the year. This measure excludes the effects of certain income and expense items, which are unusual by virtue of
\n
their size and incidence, in the context of the Group\u2019s ongoing core operations, such as the impairment of intangible
\n
assets and one-off items of expenditure.
\n
All revenue is derived wholly from external customers and is generated from a large number of customers, none of
\n
whom is individually significant.
\n
The Group\u2019s major revenue-generating asset class comprises its software and data processing services and is directly
\n
attributable to its reportable segment operations. In addition, as the Group is managed as a single business unit,
\n
all other assets and liabilities have been allocated to the Group\u2019s single reportable segment. There have been no
\n
changes to the basis of segmentation or the measurement basis for the segment profit or loss.
Revenue split by country, is dependent on the location of the hostel or property. No single country, year on year,
\n
contributes 10% or more of total revenue. Our top five countries year on year account for 38% of overall revenue
\n
(2021: 43%) relating to USA and key European destinations. Revenue split by continent is presented as follows
:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Europe
45,936
10,713
\n
Americas
15,719
5,213
\n
Asia, Africa and Oceania
8,035
975
\n
Total revenue
69,690
16,901
\n
Revenue arising within Ireland, the country of domicile, amounted to \u20ac1,795k (2021: \u20ac492k).
\n
Disaggregation of revenue is presented as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Technology and data processing fees
69,363
16,849
\n
Advertising revenue and ancillary services
327
52
\n
Total revenue
69,690
16,901
\n
In the year ended 31 December 2022, the Group generated 100% (2021: 100%) of its revenues from the technology
\n
and data processing fees that it charged to accommodation providers.
\n
As at 31 December 2022, \u20ac3,005k of revenue relating to free cancellation bookings has been deferred (2021: \u20ac1,020k).
\n
Revenue is recognised at the time the reservation is made in respect of non-refundable commission on the basis that
\n
the Group has met its performance obligations at the time the booking is made. In respect of the free cancellation
\n
product, which offers the traveller the opportunity to make a booking on a free cancellation basis and to receive a
\n
refund of their deposit in certain circumstances, such related revenue is not recognised until the last cancellation
\n
date has passed as one party can withdraw from the contract until such a date has passed. Deferred revenue is
\n
expected to be recognised within twelve months of initial recognition.
\n
Advertising revenue and revenue generated from other services are recognised over the period when the service
\n
is performed.
\n
The Group\u2019s non-current assets are located in Ireland, Australia, the United Kingdom, Portugal, and China. Non-
\n
current assets are disaggregated as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Total non-current assets
84,997
89,221
\n
Analysed as:
\n
Ireland
83,825
87,799
\n
Australia
980
1,186
\n
United Kingdom
20
32
\n
Portugal
156
165
\n
China
16
39", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14017": { "value": "The Directors determine, and present operating segments based on the information that is provided internally to the
Chief Executive Officer, who is the Company\u2019s Chief Operating Decision Maker (CODM). When making resource
\n
allocation decisions, the CODM evaluates booking numbers and average booking value. The objective in making
\n
resource allocation decisions is to maximise consolidated financial results.
\n
The CODM assesses the performance of the business based on the consolidated adjusted loss after tax of the Group
\n
for the year. This measure excludes the effects of certain income and expense items, which are unusual by virtue of
\n
their size and incidence, in the context of the Group\u2019s ongoing core operations, such as the impairment of intangible
\nassets and one-off items of expenditure.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14132": { "value": "4. Operating expenses excluding impairment
Loss for the year has been arrived at after charging/(crediting) the following operating costs:
\n
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Marketing expenses
42,233
13,792
\n
Staff costs
18,078
15,101
\n
*
\n
Credit card processing fees
2,047
573
\n
Loss on disposal plant, property and equipment
1
492
\n
Net profit on disposal of leases
14
(1)
(793)
\n
Exceptional items
5
835
588
\n
FX loss
714
419
\n
Other administrative costs
7,609
6,932
\n
*
\n
Total administrative expenses
71,516
37,104
\n
Depreciation of tangible fixed assets
11
968
1,519
\n
Amortisation of intangible fixed assets
10
10,629
10,892
\n
Total operating expenses excluding impairment
83,113
49,515
\n
*
\n
An amount of \u20ac445k has been re-presented in the prior year between staff costs and other administrative costs relating to third party contractors
\n
engaged by the Group to assist on development labour projects for a period of time.
\n
Included in staff costs are government assistance amounts totalling \u20ac376k (2021: \u20ac1,771k) for a subsidy received
\n
under the Employment Wage Subsidy Scheme in Ireland. Prior year amounts also include \u20ac15.9k received for
\n
furloughed employees under the Coronavirus Job Retention Scheme in the UK.
\n
Included within marketing expenses are direct marketing costs of \u20ac41,393k (2021: \u20ac12,763k). Other administration
\n
costs include rent and rates, legal and professional, training and recruitment, website maintenance and security,
\n
ecommerce and data analytics.
\n
Included within operating expenses is a total credit of \u20ac184k (2021: \u20acnil) in relation to an R&D tax credit claimed in
\n
respect of projects completed in 2021.
\n
Auditor\u2019s remuneration
\n
During the year, the Group obtained the following services from its auditor, Deloitte Ireland LLP:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Fees payable for the statutory audit of the Company
\n
and consolidated financial statements
48
42
\n
Fees payable for other services:
\n
\u2013 statutory audit of subsidiary undertakings
120
96
\n
\u2013 tax advisory services
\u2013
\u2013
\n
\u2013 audit related assurance services
34
8
\n
\u2013 corporate finance services
\u2013
\u2013
\n
\u2013 other non\u2013audit services
13
13
\n
Total
215
159", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14133": { "value": "4. Operating expenses excluding impairment
Loss for the year has been arrived at after charging/(crediting) the following operating costs:
\n
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Marketing expenses
42,233
13,792
\n
Staff costs
18,078
15,101
\n
*
\n
Credit card processing fees
2,047
573
\n
Loss on disposal plant, property and equipment
1
492
\n
Net profit on disposal of leases
14
(1)
(793)
\n
Exceptional items
5
835
588
\n
FX loss
714
419
\n
Other administrative costs
7,609
6,932
\n
*
\n
Total administrative expenses
71,516
37,104
\n
Depreciation of tangible fixed assets
11
968
1,519
\n
Amortisation of intangible fixed assets
10
10,629
10,892
\n
Total operating expenses excluding impairment
83,113
49,515
\n
*
\n
An amount of \u20ac445k has been re-presented in the prior year between staff costs and other administrative costs relating to third party contractors
\n
engaged by the Group to assist on development labour projects for a period of time.
\n
Included in staff costs are government assistance amounts totalling \u20ac376k (2021: \u20ac1,771k) for a subsidy received
\n
under the Employment Wage Subsidy Scheme in Ireland. Prior year amounts also include \u20ac15.9k received for
\n
furloughed employees under the Coronavirus Job Retention Scheme in the UK.
\n
Included within marketing expenses are direct marketing costs of \u20ac41,393k (2021: \u20ac12,763k). Other administration
\n
costs include rent and rates, legal and professional, training and recruitment, website maintenance and security,
\n
ecommerce and data analytics.
\n
Included within operating expenses is a total credit of \u20ac184k (2021: \u20acnil) in relation to an R&D tax credit claimed in
\n
respect of projects completed in 2021.
\n
Auditor\u2019s remuneration
\n
During the year, the Group obtained the following services from its auditor, Deloitte Ireland LLP:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Fees payable for the statutory audit of the Company
\n
and consolidated financial statements
48
42
\n
Fees payable for other services:
\n
\u2013 statutory audit of subsidiary undertakings
120
96
\n
\u2013 tax advisory services
\u2013
\u2013
\n
\u2013 audit related assurance services
34
8
\n
\u2013 corporate finance services
\u2013
\u2013
\n
\u2013 other non\u2013audit services
13
13
\n
Total
215
159", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14134": { "value": "4. Operating expenses excluding impairment
Loss for the year has been arrived at after charging/(crediting) the following operating costs:
\n
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Marketing expenses
42,233
13,792
\n
Staff costs
18,078
15,101
\n
*
\n
Credit card processing fees
2,047
573
\n
Loss on disposal plant, property and equipment
1
492
\n
Net profit on disposal of leases
14
(1)
(793)
\n
Exceptional items
5
835
588
\n
FX loss
714
419
\n
Other administrative costs
7,609
6,932
\n
*
\n
Total administrative expenses
71,516
37,104
\n
Depreciation of tangible fixed assets
11
968
1,519
\n
Amortisation of intangible fixed assets
10
10,629
10,892
\n
Total operating expenses excluding impairment
83,113
49,515
\n
*
\n
An amount of \u20ac445k has been re-presented in the prior year between staff costs and other administrative costs relating to third party contractors
\n
engaged by the Group to assist on development labour projects for a period of time.
\n
Included in staff costs are government assistance amounts totalling \u20ac376k (2021: \u20ac1,771k) for a subsidy received
\n
under the Employment Wage Subsidy Scheme in Ireland. Prior year amounts also include \u20ac15.9k received for
\n
furloughed employees under the Coronavirus Job Retention Scheme in the UK.
\n
Included within marketing expenses are direct marketing costs of \u20ac41,393k (2021: \u20ac12,763k). Other administration
\n
costs include rent and rates, legal and professional, training and recruitment, website maintenance and security,
\n
ecommerce and data analytics.
\n
Included within operating expenses is a total credit of \u20ac184k (2021: \u20acnil) in relation to an R&D tax credit claimed in
\n
respect of projects completed in 2021.
\n
Auditor\u2019s remuneration
\n
During the year, the Group obtained the following services from its auditor, Deloitte Ireland LLP:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Fees payable for the statutory audit of the Company
\n
and consolidated financial statements
48
42
\n
Fees payable for other services:
\n
\u2013 statutory audit of subsidiary undertakings
120
96
\n
\u2013 tax advisory services
\u2013
\u2013
\n
\u2013 audit related assurance services
34
8
\n
\u2013 corporate finance services
\u2013
\u2013
\n
\u2013 other non\u2013audit services
13
13
\n
Total
215
159", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14140": { "value": "2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Marketing expenses
42,233
13,792
\n
Staff costs
18,078
15,101
\n
*
\n
Credit card processing fees
2,047
573
\n
Loss on disposal plant, property and equipment
1
492
\n
Net profit on disposal of leases
14
(1)
(793)
\n
Exceptional items
5
835
588
\n
FX loss
714
419
\n
Other administrative costs
7,609
6,932
\n
*
\n
Total administrative expenses
71,516
37,104
\n
Depreciation of tangible fixed assets
11
968
1,519
\n
Amortisation of intangible fixed assets
10
10,629
10,892
\n
Total operating expenses excluding impairment
83,113
49,515
\n
*
\n
An amount of \u20ac445k has been re-presented in the prior year between staff costs and other administrative costs relating to third party contractors
\nengaged by the Group to assist on development labour projects for a period of time.", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14193": { "value": "Included in staff costs are government assistance amounts totalling \u20ac376k (2021: \u20ac1,771k) for a subsidy received
under the Employment Wage Subsidy Scheme in Ireland. Prior year amounts also include \u20ac15.9k received for
\nfurloughed employees under the Coronavirus Job Retention Scheme in the UK.", "dimensions": { "concept": "ifrs-full:DisclosureOfGovernmentGrantsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14204": { "value": "Auditor\u2019s remuneration
During the year, the Group obtained the following services from its auditor, Deloitte Ireland LLP:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Fees payable for the statutory audit of the Company
\n
and consolidated financial statements
48
42
\n
Fees payable for other services:
\n
\u2013 statutory audit of subsidiary undertakings
120
96
\n
\u2013 tax advisory services
\u2013
\u2013
\n
\u2013 audit related assurance services
34
8
\n
\u2013 corporate finance services
\u2013
\u2013
\n
\u2013 other non\u2013audit services
13
13
\n
Total
215
159", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14272": { "value": "6. Staff costs
The average monthly number of people employed (including Executive Directors) was as follows:
\n
2022
2021
\n
Average number of persons employed:
\n
Administration and sales
130
110
\n
Development and information technology
109
116
\n
Total
239
226
\n
The aggregate remuneration costs of these employees is analysed as follows:
\n
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Staff costs comprise:
\n
Wages and salaries
14,638
12,378
\n
Termination benefits \u2013 exceptional items
218
672
\n
Social security costs
1,987
1,367
\n
Pensions costs
432
460
\n
Other benefits
687
442
\n
Share option charge
22
2,396
2,162
\n
20,358
17,481
\n
Capitalised development labour
10
(2,062)
(1,708)
\n
Total
18,296
15,773
\n
Termination benefits above are also disclosed within note 5 exceptional items and relate to termination payments
\n
made as part of a group restructure. Capitalised development labour includes \u20ac2,062k (2021: \u20ac1,708k) of employee
\ncosts capitalised.", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14275": { "value": "The average monthly number of people employed (including Executive Directors) was as follows:
2022
2021
\n
Average number of persons employed:
\n
Administration and sales
130
110
\n
Development and information technology
109
116
\n
Total
239
226", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14339": { "value": "7. Finance costs
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Interest on lease liabilities
14
31
102
\n
Finance costs \u2013 HPS facility
20
4,243
3,344
\n
Finance costs \u2013 other
27
55
\n
Total
4,301
3,501", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14340": { "value": "7. Finance costs
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Interest on lease liabilities
14
31
102
\n
Finance costs \u2013 HPS facility
20
4,243
3,344
\n
Finance costs \u2013 other
27
55
\n
Total
4,301
3,501", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14341": { "value": "7. Finance costs
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Interest on lease liabilities
14
31
102
\n
Finance costs \u2013 HPS facility
20
4,243
3,344
\n
Finance costs \u2013 other
27
55
\n
Total
4,301
3,501", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingCostsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14368": { "value": "8. Taxation
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Corporation tax:
\n
Current year charge
183
372
\n
Adjustments in respect of prior years
(10)
(178)
\n
Total
173
194
\n
Origination and reversal of temporary differences
12
(822)
(756)
\n
Total tax credit for the year
(649)
(562)
\n
Corporation tax is calculated at 12.5% (2021: 12.5%) of the estimated taxable profit for the year. The Irish 12.5%
\n
corporation tax rate has been used as this is the rate at which most of the Group\u2019s profits will be taxed. Taxation
\n
for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. The corporation tax
\n
charge relates primarily to our UK, Portuguese and Spanish operations where tax losses from our Irish operations
\n
cannot be utilised. The charge for the year can be reconciled to the consolidated income statement as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Loss before tax on continuing operations
(17,912)
(36,578)
\n
Tax at the Irish corporation tax rate of 12.5% (2021: 12.5%)
(2,239)
(4,572)
\n
Effects of:
\n
Tax effect of expenses that are not deductible in determining taxable profit
1,672
1,556
\n
Tax effect of losses not utilised
480
3,173
\n
Tax effect of losses utilised
(34)
\u2013
\n
Tax effect of income taxed at different rates
201
50
\n
Depreciation less than capital allowances
(53)
(130)
\n
Effect of different tax rates of subsidiaries operating in other jurisdictions
156
295
\n
Recognition of deferred tax asset
(822)
(756)
\n
Adjustments in respect of prior years
(10)
(178)
\n
Total
(649)
(562)
\n
In 2022 the Group had an unrecognised deferred tax asset of \u20ac4,607k (2021: \u20ac4,127k). No deferred tax asset was
\n
recognised in the current or prior year for unused trading tax losses as it was not considered probable that the Group
\n
will be able to utilise the deferred tax asset for these losses over a five-year period based on the profit or loss set
\n
out within the Group\u2019s 2023 budget and further four-year outlook. Unrecognised deferred tax assets relate to Irish
\ntrading losses and have no expiry date.", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14451": { "value": "9. Loss per share
Basic loss per share is computed by dividing the loss for the year after tax available to ordinary shareholders by the
\n
weighted average number of ordinary shares outstanding during the year.
\n
2022
2021
\n
Weighted average number of shares in issue (\u2018000s)
117,338
116,321
\n
Loss for the year (\u20ac\u2019000s)
(17,263)
(36,016)
\n
Basic loss per share (euro cent)
(14.71)
(30.96)
\n
Diluted loss per share is computed by adjusting the weighted average number of ordinary shares in issue to assume
\n
conversion of all potential dilutive ordinary shares. The issue of warrants (note 20) and share options and share awards
\n
(note 22) are the Company\u2019s only potential dilutive ordinary shares. Ordinary shares potentially issuable from
\n
share-based payment arrangements and warrants are anti-dilutive due to the loss in the financial period meaning
\n
there is no difference between basic and diluted earnings per share.
\n
2022
2021
\n
Weighted average number of ordinary shares in issue (\u2018000s)
117,338
116,321
\n
Effect of dilutive potential ordinary shares:
\n
Share options (\u2018000s)
\u2013
\u2013
\n
Weighted average number of ordinary shares for the purpose
\n
of diluted earnings per share (\u2018000s)
117,338
116,321
\n
Diluted loss per share (euro cent)
(14.71)
(30.96)", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14498": { "value": "10. Intangible assets
The table below shows the movements in intangible assets for the year:
\n
Goodwill
\n
Domain
\n
Names
Technology
\n
Affiliates
\n
Contracts
\n
Capitalised
\n
Development
\n
Costs
Total
\n
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
Cost
\n
Balance at 1 January 2021
47,274
214,708
14,100
5,500
18,021
299,603
\n
Additions
\u2013
\u2013
\u2013
\u2013
4,397
4,397
\n
Disposals for the year
\u2013
\u2013
(52)
\u2013
\u2013
(52)
\n
Balance at 31 December 2021
47,274
214,708
14,048
5,500
22,418
303,948
\n
Additions
\u2013
71
15
\u2013
4,511
4,597
\n
Balance at 31 December 2022
47,274
214,779
14,063
5,500
26,929
308,545
\n
Accumulated amortisation
\n
and impairment
\n
Balance at 1 January 2021
(29,426)
(150,488)
(13,922)
(5,500)
(14,015)
(213,351)
\n
Charge for year
\u2013
(7,810)
(119)
\u2013
(2,963)
(10,892)
\n
Disposals for the year
\u2013
\u2013
52
\u2013
\u2013
52
\n
Impairment recognised
\u2013
\u2013
\u2013
\u2013
(367)
(367)
\n
Balance at 31 December 2021
(29,426)
(158,298)
(13,989)
(5,500)
(17,345)
(224,558)
\n
Charge for year
\u2013
(7,813)
(32)
\u2013
(2,784)
(10,629)
\n
Balance at 31 December 2022
(29,426)
(166,111)
(14,021)
(5,500)
(20,129)
235,187
\n
Carrying amount
\n
At 31 December 2021
17,848
56,410
59
\u2013
5,073
79,390
\n
At 31 December 2022
17,848
48,668
42
\u2013
6,800
73,358
\n
Capitalised development cost additions during the year comprised of internal staff costs of \u20ac2,062k (2021: \u20ac1,708k)
\n
and other internally generated additions of \u20ac2,449k (2021: \u20ac2,689k). Development costs have been capitalised in
\n
accordance with IAS 38 Intangible Assets and are therefore not treated, for dividend purposes, as a realised loss.
\n
Hostelworld continue to utilise affiliate contracts to generate revenue and continue to pay affiliate partner commissions.
\n
Impairment review
\n
The carrying value of the capitalised development costs balance at 31 December 2022 is \u20ac6,800k (2021: \u20ac5,073k).
\n
Prior year impairment charge of \u20ac367k relates to an impairment of a specific project following a management decision
\n
to cease ongoing investment.
\n
The carrying value of the goodwill balance at 31 December 2022 is \u20ac17,848k (2021: \u20ac17,848k) and relates to an
\n
investment in Hostelworld.com Limited by the Group in 2009. Goodwill, which has an indefinite useful life, is subject
\n
to annual impairment testing, or more frequent testing if there are indicators of impairment. Following impairment
\n
testing based on the assumptions below, no impairment was recognised for goodwill in the current or prior year.
\n
The carrying value of the Group\u2019s domain names and certain technology assets, referred to henceforth as \u2018intellectual
\n
property\u2019 at 31 December 2022 is \u20ac48,668k (2021: \u20ac56,410k). Following impairment testing based on the
\n
assumptions below, no impairment was recognised for the Group\u2019s intellectual property in the current or prior year.
Cash generating units (CGUs) to which goodwill and intellectual property have been allocated represent the lowest
\n
level at which the assets are monitored for internal reporting purposes. Goodwill has not been allocated across
\n
CGUs as it is not possible to identify separate CGUs. The recoverable amount of goodwill and intellectual property
\n
allocated to a CGU is determined based on a value in use computation, which represents the highest value
\n
attributed to the assets. The key assumptions for calculating value in use of the CGUs are discount rates, growth
\n
rates and cash flows. All three assumptions are based on the Group\u2019s budgeting and forecasting process which
\n
we describe in detail.
\n
Group budgeting and forecasting assumptions used within impairment analysis
\n
Our impairment reviews are based on the 2023 budget which has been prepared on a 12-month calendar basis, and
\n
a further Board approved four-year outlook. Revenue and marketing costs projections, within Budget 2023, have
\n
been developed by triangulating three different models, where each model output has helped to validate the others.
\n
1.
Regional level forecasting reflecting an easing of the remaining travel restrictions in place. From 2020 through
\n
2022 we can evidence a correlated increase in revenue when borders reopen. We have assumed a full recovery
\n
to pre-pandemic booking levels in 2023 in our largest markets, with other markets taking longer. Forecasting at
\n
a regional level allows us to forecast specific bed prices, booking models, geo mix and seasonality effectively
\n
in our modelling;
\n
2.
Channel mix between free and paid customers where assumptions are made based on volume of new customer
\n
acquisitions, cost of customer acquisitions and anticipated bookings based on marketing spend;
\n
3.
Modelling new and returning customers by using statistical models built using over 15 years of customer data.
\n
This rich customer cohort data set enables us to model recurring revenue streams, with a high degree of
\n
predictability. We layer in additional knowledge on new customer acquisition costs and expected economics
\n
between free and paid customers.
\n
Forecasting at this regional and channel level also allows us to adjust for bed price inflation and cost of living pressures.
\n
These risks are somewhat mitigated as our target 18-34
-year-old population typically have the means and the flexibility
\n
to travel, tending to view it as a \u2018rite of passage\u2019 rather than purely discretionary spend. Our strategy focuses on
\n
customers connecting on a free platform that we provide, and hostels are a budget friendly option to travel.
\n
We have assumed in Budget 2023 a modest contraction in our ABV year on year, provisioning for unit bed price
\n
deflation versus 2022 and increased volume from Asian markets, where bed prices are lower. We have modelled
\n
modest price inflation in our operating costs.
\n
Within our four-year outlook we unwind the recovery of the remaining travel restrictions in place. We have modelled
\n
our 2022 cancellation rate for each year (which we consider heightened due to the volume of flight cancellations
\n
and disruption in 2022 and the impact of the Omicron variant in Q1 2022). Over the four-year period we have
\n
assumed growth in revenue projections, beyond 2019 volumes. This is underpinned by an improved modernised
\n
platform, a growth in return customer revenue volumes (which are statistically modelled), a growth in supply and
\n
the development of our social strategy.
10. Intangible assets
continued
\n
Consideration of climate related risks
\n
Climate related risks can impact our business as a customer may not want to travel, a hostel may be forced to close,
\n
or an area is not accessible. Revenue cashflows included in the budgeting process have captured, for example,
\n
the impacts of adverse weather conditions experienced by the Group in 2022 as we model based on historic run
\n
rates at a country and seasonal level. Any further decline in revenue growth rates which could impact the Group
\n
are represented by a decline in revenue growth rates included in the sensitivity analysis below.
\n
Discount rate applied
\n
2022
2021
\n
Pre-tax discount rate: Goodwill
16.89%
14.9%
\n
Pre-tax discount rate: Intellectual Property
17.85%
15.57%
\n
The pre-tax discount rates are based on the Group\u2019s weighted average cost of capital, calculated using the Capital
\n
Asset Pricing Model adjusted for the Group\u2019s specific beta coefficient together with a country risk premium to take
\n
account of the countries from where the CGU derives its cash flows.
\n
Discount rates have increased year on year primarily driven by movement in government bond yields in 2022
\n
which reflects market movements such as rising inflation and energy costs and global macro-economic factors
\n
including the war in Ukraine.
\n
Cash flows
\n
The cash flow projections are based on a Board approved 2023 budget and further four-year outlook described
\n
previously. In preparing the Board approved 2023 budget and further four-year outlook, management have based
\n
projections on historical performance and recovery of regions from COVID-19, together with management\u2019s
\n
expectation of future trends, primarily the social strategy. Management have also considered the Group\u2019s history
\n
of earnings and core strategic initiatives including improving the competitiveness of our core OTA business and
\n
platform modernisation.
\n
Within cash flows management have also considered capital expenditure requirements to maintain the CGU\u2019s
\n
performance and profitability. Working capital requirements are forecast to move in line with activity.
\n
Growth rates
\n
Growth rates are assessed based on the Board approved 2023 budget and further four-year outlook. For goodwill
\n
growth rates included in the 2023 budget and further four-year outlook ranged from 26% to 8% (2021: 220% to
\n
8%). The high growth rate in earlier years reflects the Group\u2019s continuing recovery from COVID-19 as the remaining
\n
travel restrictions ease, with the Budget assuming 2023 is the first full year of recovery for our largest market
\n
Europe. A terminal value of 2% (2021: 2%) growth into perpetuity was used to extrapolate cash flows beyond the
\n
2023 budget and further four-year outlook. This growth rate does not exceed the long-term average growth rate
\n
for the industry in which each CGU operates.
\n
For intellectual property growth rates included beyond the 2023 budget and further four-year outlook ranged from
\n
6% to 2% (2021: 6% to 3%), as the Group expects growth in revenues beyond 2019 volumes underpinned by an
\n
improved modernised platform, a growth in return customer revenue volumes (which we can statistically model),
\n
a growth in supply and the development of our social strategy.
\n
Sensitivity analysis
\n
The key assumptions underlying the impairment reviews are set out above. Sensitivity analysis has been conducted
\n
in respect of goodwill and intellectual property using the following sensitivity assumptions: a 2% increase in the
\n
discount rate; 10% decline in revenue in each year of the Board approved 2023 budget and further four-year
\n
outlook and nil terminal value growth. Under each scenario no impairment was identified.
Sensitivity analysis has been completed on key assumptions in isolation and in combination, and the headroom
\n
included is significant. The key assumptions are discount factor, long term growth rates and growth rates for each
\n
of the Board approved 2023 budget and further four-year outlook.
\n
From our sensitivity analysis we identified that goodwill would need to have nil terminal value growth and an increase
\n
in discount rate of 8% to be considered impaired. In addition, for our intellectual property to be considered impaired,
\n
cashflows would need to stay at 2023 levels (no growth rates apply from 2023 over the remaining useful life to
\n
2033) and the discount rate would need to increase by 1% to be considered impaired. Management consider both of
\nthese scenarios unlikely.", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14499": { "value": "10. Intangible assets
The table below shows the movements in intangible assets for the year:
\n
Goodwill
\n
Domain
\n
Names
Technology
\n
Affiliates
\n
Contracts
\n
Capitalised
\n
Development
\n
Costs
Total
\n
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
Cost
\n
Balance at 1 January 2021
47,274
214,708
14,100
5,500
18,021
299,603
\n
Additions
\u2013
\u2013
\u2013
\u2013
4,397
4,397
\n
Disposals for the year
\u2013
\u2013
(52)
\u2013
\u2013
(52)
\n
Balance at 31 December 2021
47,274
214,708
14,048
5,500
22,418
303,948
\n
Additions
\u2013
71
15
\u2013
4,511
4,597
\n
Balance at 31 December 2022
47,274
214,779
14,063
5,500
26,929
308,545
\n
Accumulated amortisation
\n
and impairment
\n
Balance at 1 January 2021
(29,426)
(150,488)
(13,922)
(5,500)
(14,015)
(213,351)
\n
Charge for year
\u2013
(7,810)
(119)
\u2013
(2,963)
(10,892)
\n
Disposals for the year
\u2013
\u2013
52
\u2013
\u2013
52
\n
Impairment recognised
\u2013
\u2013
\u2013
\u2013
(367)
(367)
\n
Balance at 31 December 2021
(29,426)
(158,298)
(13,989)
(5,500)
(17,345)
(224,558)
\n
Charge for year
\u2013
(7,813)
(32)
\u2013
(2,784)
(10,629)
\n
Balance at 31 December 2022
(29,426)
(166,111)
(14,021)
(5,500)
(20,129)
235,187
\n
Carrying amount
\n
At 31 December 2021
17,848
56,410
59
\u2013
5,073
79,390
\n
At 31 December 2022
17,848
48,668
42
\u2013
6,800
73,358
\n
Capitalised development cost additions during the year comprised of internal staff costs of \u20ac2,062k (2021: \u20ac1,708k)
\n
and other internally generated additions of \u20ac2,449k (2021: \u20ac2,689k). Development costs have been capitalised in
\n
accordance with IAS 38 Intangible Assets and are therefore not treated, for dividend purposes, as a realised loss.
\n
Hostelworld continue to utilise affiliate contracts to generate revenue and continue to pay affiliate partner commissions.
\n
Impairment review
\n
The carrying value of the capitalised development costs balance at 31 December 2022 is \u20ac6,800k (2021: \u20ac5,073k).
\n
Prior year impairment charge of \u20ac367k relates to an impairment of a specific project following a management decision
\n
to cease ongoing investment.
\n
The carrying value of the goodwill balance at 31 December 2022 is \u20ac17,848k (2021: \u20ac17,848k) and relates to an
\n
investment in Hostelworld.com Limited by the Group in 2009. Goodwill, which has an indefinite useful life, is subject
\n
to annual impairment testing, or more frequent testing if there are indicators of impairment. Following impairment
\n
testing based on the assumptions below, no impairment was recognised for goodwill in the current or prior year.
\n
The carrying value of the Group\u2019s domain names and certain technology assets, referred to henceforth as \u2018intellectual
\n
property\u2019 at 31 December 2022 is \u20ac48,668k (2021: \u20ac56,410k). Following impairment testing based on the
\n
assumptions below, no impairment was recognised for the Group\u2019s intellectual property in the current or prior year.
Cash generating units (CGUs) to which goodwill and intellectual property have been allocated represent the lowest
\n
level at which the assets are monitored for internal reporting purposes. Goodwill has not been allocated across
\n
CGUs as it is not possible to identify separate CGUs. The recoverable amount of goodwill and intellectual property
\n
allocated to a CGU is determined based on a value in use computation, which represents the highest value
\n
attributed to the assets. The key assumptions for calculating value in use of the CGUs are discount rates, growth
\n
rates and cash flows. All three assumptions are based on the Group\u2019s budgeting and forecasting process which
\n
we describe in detail.
\n
Group budgeting and forecasting assumptions used within impairment analysis
\n
Our impairment reviews are based on the 2023 budget which has been prepared on a 12-month calendar basis, and
\n
a further Board approved four-year outlook. Revenue and marketing costs projections, within Budget 2023, have
\n
been developed by triangulating three different models, where each model output has helped to validate the others.
\n
1.
Regional level forecasting reflecting an easing of the remaining travel restrictions in place. From 2020 through
\n
2022 we can evidence a correlated increase in revenue when borders reopen. We have assumed a full recovery
\n
to pre-pandemic booking levels in 2023 in our largest markets, with other markets taking longer. Forecasting at
\n
a regional level allows us to forecast specific bed prices, booking models, geo mix and seasonality effectively
\n
in our modelling;
\n
2.
Channel mix between free and paid customers where assumptions are made based on volume of new customer
\n
acquisitions, cost of customer acquisitions and anticipated bookings based on marketing spend;
\n
3.
Modelling new and returning customers by using statistical models built using over 15 years of customer data.
\n
This rich customer cohort data set enables us to model recurring revenue streams, with a high degree of
\n
predictability. We layer in additional knowledge on new customer acquisition costs and expected economics
\n
between free and paid customers.
\n
Forecasting at this regional and channel level also allows us to adjust for bed price inflation and cost of living pressures.
\n
These risks are somewhat mitigated as our target 18-34
-year-old population typically have the means and the flexibility
\n
to travel, tending to view it as a \u2018rite of passage\u2019 rather than purely discretionary spend. Our strategy focuses on
\n
customers connecting on a free platform that we provide, and hostels are a budget friendly option to travel.
\n
We have assumed in Budget 2023 a modest contraction in our ABV year on year, provisioning for unit bed price
\n
deflation versus 2022 and increased volume from Asian markets, where bed prices are lower. We have modelled
\n
modest price inflation in our operating costs.
\n
Within our four-year outlook we unwind the recovery of the remaining travel restrictions in place. We have modelled
\n
our 2022 cancellation rate for each year (which we consider heightened due to the volume of flight cancellations
\n
and disruption in 2022 and the impact of the Omicron variant in Q1 2022). Over the four-year period we have
\n
assumed growth in revenue projections, beyond 2019 volumes. This is underpinned by an improved modernised
\n
platform, a growth in return customer revenue volumes (which are statistically modelled), a growth in supply and
\n
the development of our social strategy.
10. Intangible assets
continued
\n
Consideration of climate related risks
\n
Climate related risks can impact our business as a customer may not want to travel, a hostel may be forced to close,
\n
or an area is not accessible. Revenue cashflows included in the budgeting process have captured, for example,
\n
the impacts of adverse weather conditions experienced by the Group in 2022 as we model based on historic run
\n
rates at a country and seasonal level. Any further decline in revenue growth rates which could impact the Group
\n
are represented by a decline in revenue growth rates included in the sensitivity analysis below.
\n
Discount rate applied
\n
2022
2021
\n
Pre-tax discount rate: Goodwill
16.89%
14.9%
\n
Pre-tax discount rate: Intellectual Property
17.85%
15.57%
\n
The pre-tax discount rates are based on the Group\u2019s weighted average cost of capital, calculated using the Capital
\n
Asset Pricing Model adjusted for the Group\u2019s specific beta coefficient together with a country risk premium to take
\n
account of the countries from where the CGU derives its cash flows.
\n
Discount rates have increased year on year primarily driven by movement in government bond yields in 2022
\n
which reflects market movements such as rising inflation and energy costs and global macro-economic factors
\n
including the war in Ukraine.
\n
Cash flows
\n
The cash flow projections are based on a Board approved 2023 budget and further four-year outlook described
\n
previously. In preparing the Board approved 2023 budget and further four-year outlook, management have based
\n
projections on historical performance and recovery of regions from COVID-19, together with management\u2019s
\n
expectation of future trends, primarily the social strategy. Management have also considered the Group\u2019s history
\n
of earnings and core strategic initiatives including improving the competitiveness of our core OTA business and
\n
platform modernisation.
\n
Within cash flows management have also considered capital expenditure requirements to maintain the CGU\u2019s
\n
performance and profitability. Working capital requirements are forecast to move in line with activity.
\n
Growth rates
\n
Growth rates are assessed based on the Board approved 2023 budget and further four-year outlook. For goodwill
\n
growth rates included in the 2023 budget and further four-year outlook ranged from 26% to 8% (2021: 220% to
\n
8%). The high growth rate in earlier years reflects the Group\u2019s continuing recovery from COVID-19 as the remaining
\n
travel restrictions ease, with the Budget assuming 2023 is the first full year of recovery for our largest market
\n
Europe. A terminal value of 2% (2021: 2%) growth into perpetuity was used to extrapolate cash flows beyond the
\n
2023 budget and further four-year outlook. This growth rate does not exceed the long-term average growth rate
\n
for the industry in which each CGU operates.
\n
For intellectual property growth rates included beyond the 2023 budget and further four-year outlook ranged from
\n
6% to 2% (2021: 6% to 3%), as the Group expects growth in revenues beyond 2019 volumes underpinned by an
\n
improved modernised platform, a growth in return customer revenue volumes (which we can statistically model),
\n
a growth in supply and the development of our social strategy.
\n
Sensitivity analysis
\n
The key assumptions underlying the impairment reviews are set out above. Sensitivity analysis has been conducted
\n
in respect of goodwill and intellectual property using the following sensitivity assumptions: a 2% increase in the
\n
discount rate; 10% decline in revenue in each year of the Board approved 2023 budget and further four-year
\n
outlook and nil terminal value growth. Under each scenario no impairment was identified.
Sensitivity analysis has been completed on key assumptions in isolation and in combination, and the headroom
\n
included is significant. The key assumptions are discount factor, long term growth rates and growth rates for each
\n
of the Board approved 2023 budget and further four-year outlook.
\n
From our sensitivity analysis we identified that goodwill would need to have nil terminal value growth and an increase
\n
in discount rate of 8% to be considered impaired. In addition, for our intellectual property to be considered impaired,
\n
cashflows would need to stay at 2023 levels (no growth rates apply from 2023 over the remaining useful life to
\n
2033) and the discount rate would need to increase by 1% to be considered impaired. Management consider both of
\nthese scenarios unlikely.", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14500": { "value": "10. Intangible assets
The table below shows the movements in intangible assets for the year:
\n
Goodwill
\n
Domain
\n
Names
Technology
\n
Affiliates
\n
Contracts
\n
Capitalised
\n
Development
\n
Costs
Total
\n
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
Cost
\n
Balance at 1 January 2021
47,274
214,708
14,100
5,500
18,021
299,603
\n
Additions
\u2013
\u2013
\u2013
\u2013
4,397
4,397
\n
Disposals for the year
\u2013
\u2013
(52)
\u2013
\u2013
(52)
\n
Balance at 31 December 2021
47,274
214,708
14,048
5,500
22,418
303,948
\n
Additions
\u2013
71
15
\u2013
4,511
4,597
\n
Balance at 31 December 2022
47,274
214,779
14,063
5,500
26,929
308,545
\n
Accumulated amortisation
\n
and impairment
\n
Balance at 1 January 2021
(29,426)
(150,488)
(13,922)
(5,500)
(14,015)
(213,351)
\n
Charge for year
\u2013
(7,810)
(119)
\u2013
(2,963)
(10,892)
\n
Disposals for the year
\u2013
\u2013
52
\u2013
\u2013
52
\n
Impairment recognised
\u2013
\u2013
\u2013
\u2013
(367)
(367)
\n
Balance at 31 December 2021
(29,426)
(158,298)
(13,989)
(5,500)
(17,345)
(224,558)
\n
Charge for year
\u2013
(7,813)
(32)
\u2013
(2,784)
(10,629)
\n
Balance at 31 December 2022
(29,426)
(166,111)
(14,021)
(5,500)
(20,129)
235,187
\n
Carrying amount
\n
At 31 December 2021
17,848
56,410
59
\u2013
5,073
79,390
\n
At 31 December 2022
17,848
48,668
42
\u2013
6,800
73,358
\n
Capitalised development cost additions during the year comprised of internal staff costs of \u20ac2,062k (2021: \u20ac1,708k)
\n
and other internally generated additions of \u20ac2,449k (2021: \u20ac2,689k). Development costs have been capitalised in
\n
accordance with IAS 38 Intangible Assets and are therefore not treated, for dividend purposes, as a realised loss.
\n
Hostelworld continue to utilise affiliate contracts to generate revenue and continue to pay affiliate partner commissions.
\n
Impairment review
\n
The carrying value of the capitalised development costs balance at 31 December 2022 is \u20ac6,800k (2021: \u20ac5,073k).
\n
Prior year impairment charge of \u20ac367k relates to an impairment of a specific project following a management decision
\n
to cease ongoing investment.
\n
The carrying value of the goodwill balance at 31 December 2022 is \u20ac17,848k (2021: \u20ac17,848k) and relates to an
\n
investment in Hostelworld.com Limited by the Group in 2009. Goodwill, which has an indefinite useful life, is subject
\n
to annual impairment testing, or more frequent testing if there are indicators of impairment. Following impairment
\n
testing based on the assumptions below, no impairment was recognised for goodwill in the current or prior year.
\n
The carrying value of the Group\u2019s domain names and certain technology assets, referred to henceforth as \u2018intellectual
\n
property\u2019 at 31 December 2022 is \u20ac48,668k (2021: \u20ac56,410k). Following impairment testing based on the
\n
assumptions below, no impairment was recognised for the Group\u2019s intellectual property in the current or prior year.
Cash generating units (CGUs) to which goodwill and intellectual property have been allocated represent the lowest
\n
level at which the assets are monitored for internal reporting purposes. Goodwill has not been allocated across
\n
CGUs as it is not possible to identify separate CGUs. The recoverable amount of goodwill and intellectual property
\n
allocated to a CGU is determined based on a value in use computation, which represents the highest value
\n
attributed to the assets. The key assumptions for calculating value in use of the CGUs are discount rates, growth
\n
rates and cash flows. All three assumptions are based on the Group\u2019s budgeting and forecasting process which
\n
we describe in detail.
\n
Group budgeting and forecasting assumptions used within impairment analysis
\n
Our impairment reviews are based on the 2023 budget which has been prepared on a 12-month calendar basis, and
\n
a further Board approved four-year outlook. Revenue and marketing costs projections, within Budget 2023, have
\n
been developed by triangulating three different models, where each model output has helped to validate the others.
\n
1.
Regional level forecasting reflecting an easing of the remaining travel restrictions in place. From 2020 through
\n
2022 we can evidence a correlated increase in revenue when borders reopen. We have assumed a full recovery
\n
to pre-pandemic booking levels in 2023 in our largest markets, with other markets taking longer. Forecasting at
\n
a regional level allows us to forecast specific bed prices, booking models, geo mix and seasonality effectively
\n
in our modelling;
\n
2.
Channel mix between free and paid customers where assumptions are made based on volume of new customer
\n
acquisitions, cost of customer acquisitions and anticipated bookings based on marketing spend;
\n
3.
Modelling new and returning customers by using statistical models built using over 15 years of customer data.
\n
This rich customer cohort data set enables us to model recurring revenue streams, with a high degree of
\n
predictability. We layer in additional knowledge on new customer acquisition costs and expected economics
\n
between free and paid customers.
\n
Forecasting at this regional and channel level also allows us to adjust for bed price inflation and cost of living pressures.
\n
These risks are somewhat mitigated as our target 18-34
-year-old population typically have the means and the flexibility
\n
to travel, tending to view it as a \u2018rite of passage\u2019 rather than purely discretionary spend. Our strategy focuses on
\n
customers connecting on a free platform that we provide, and hostels are a budget friendly option to travel.
\n
We have assumed in Budget 2023 a modest contraction in our ABV year on year, provisioning for unit bed price
\n
deflation versus 2022 and increased volume from Asian markets, where bed prices are lower. We have modelled
\n
modest price inflation in our operating costs.
\n
Within our four-year outlook we unwind the recovery of the remaining travel restrictions in place. We have modelled
\n
our 2022 cancellation rate for each year (which we consider heightened due to the volume of flight cancellations
\n
and disruption in 2022 and the impact of the Omicron variant in Q1 2022). Over the four-year period we have
\n
assumed growth in revenue projections, beyond 2019 volumes. This is underpinned by an improved modernised
\n
platform, a growth in return customer revenue volumes (which are statistically modelled), a growth in supply and
\n
the development of our social strategy.
10. Intangible assets
continued
\n
Consideration of climate related risks
\n
Climate related risks can impact our business as a customer may not want to travel, a hostel may be forced to close,
\n
or an area is not accessible. Revenue cashflows included in the budgeting process have captured, for example,
\n
the impacts of adverse weather conditions experienced by the Group in 2022 as we model based on historic run
\n
rates at a country and seasonal level. Any further decline in revenue growth rates which could impact the Group
\n
are represented by a decline in revenue growth rates included in the sensitivity analysis below.
\n
Discount rate applied
\n
2022
2021
\n
Pre-tax discount rate: Goodwill
16.89%
14.9%
\n
Pre-tax discount rate: Intellectual Property
17.85%
15.57%
\n
The pre-tax discount rates are based on the Group\u2019s weighted average cost of capital, calculated using the Capital
\n
Asset Pricing Model adjusted for the Group\u2019s specific beta coefficient together with a country risk premium to take
\n
account of the countries from where the CGU derives its cash flows.
\n
Discount rates have increased year on year primarily driven by movement in government bond yields in 2022
\n
which reflects market movements such as rising inflation and energy costs and global macro-economic factors
\n
including the war in Ukraine.
\n
Cash flows
\n
The cash flow projections are based on a Board approved 2023 budget and further four-year outlook described
\n
previously. In preparing the Board approved 2023 budget and further four-year outlook, management have based
\n
projections on historical performance and recovery of regions from COVID-19, together with management\u2019s
\n
expectation of future trends, primarily the social strategy. Management have also considered the Group\u2019s history
\n
of earnings and core strategic initiatives including improving the competitiveness of our core OTA business and
\n
platform modernisation.
\n
Within cash flows management have also considered capital expenditure requirements to maintain the CGU\u2019s
\n
performance and profitability. Working capital requirements are forecast to move in line with activity.
\n
Growth rates
\n
Growth rates are assessed based on the Board approved 2023 budget and further four-year outlook. For goodwill
\n
growth rates included in the 2023 budget and further four-year outlook ranged from 26% to 8% (2021: 220% to
\n
8%). The high growth rate in earlier years reflects the Group\u2019s continuing recovery from COVID-19 as the remaining
\n
travel restrictions ease, with the Budget assuming 2023 is the first full year of recovery for our largest market
\n
Europe. A terminal value of 2% (2021: 2%) growth into perpetuity was used to extrapolate cash flows beyond the
\n
2023 budget and further four-year outlook. This growth rate does not exceed the long-term average growth rate
\n
for the industry in which each CGU operates.
\n
For intellectual property growth rates included beyond the 2023 budget and further four-year outlook ranged from
\n
6% to 2% (2021: 6% to 3%), as the Group expects growth in revenues beyond 2019 volumes underpinned by an
\n
improved modernised platform, a growth in return customer revenue volumes (which we can statistically model),
\n
a growth in supply and the development of our social strategy.
\n
Sensitivity analysis
\n
The key assumptions underlying the impairment reviews are set out above. Sensitivity analysis has been conducted
\n
in respect of goodwill and intellectual property using the following sensitivity assumptions: a 2% increase in the
\n
discount rate; 10% decline in revenue in each year of the Board approved 2023 budget and further four-year
\n
outlook and nil terminal value growth. Under each scenario no impairment was identified.
Sensitivity analysis has been completed on key assumptions in isolation and in combination, and the headroom
\n
included is significant. The key assumptions are discount factor, long term growth rates and growth rates for each
\n
of the Board approved 2023 budget and further four-year outlook.
\n
From our sensitivity analysis we identified that goodwill would need to have nil terminal value growth and an increase
\n
in discount rate of 8% to be considered impaired. In addition, for our intellectual property to be considered impaired,
\n
cashflows would need to stay at 2023 levels (no growth rates apply from 2023 over the remaining useful life to
\n
2033) and the discount rate would need to increase by 1% to be considered impaired. Management consider both of
\nthese scenarios unlikely.", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14501": { "value": "10. Intangible assets
The table below shows the movements in intangible assets for the year:
\n
Goodwill
\n
Domain
\n
Names
Technology
\n
Affiliates
\n
Contracts
\n
Capitalised
\n
Development
\n
Costs
Total
\n
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
Cost
\n
Balance at 1 January 2021
47,274
214,708
14,100
5,500
18,021
299,603
\n
Additions
\u2013
\u2013
\u2013
\u2013
4,397
4,397
\n
Disposals for the year
\u2013
\u2013
(52)
\u2013
\u2013
(52)
\n
Balance at 31 December 2021
47,274
214,708
14,048
5,500
22,418
303,948
\n
Additions
\u2013
71
15
\u2013
4,511
4,597
\n
Balance at 31 December 2022
47,274
214,779
14,063
5,500
26,929
308,545
\n
Accumulated amortisation
\n
and impairment
\n
Balance at 1 January 2021
(29,426)
(150,488)
(13,922)
(5,500)
(14,015)
(213,351)
\n
Charge for year
\u2013
(7,810)
(119)
\u2013
(2,963)
(10,892)
\n
Disposals for the year
\u2013
\u2013
52
\u2013
\u2013
52
\n
Impairment recognised
\u2013
\u2013
\u2013
\u2013
(367)
(367)
\n
Balance at 31 December 2021
(29,426)
(158,298)
(13,989)
(5,500)
(17,345)
(224,558)
\n
Charge for year
\u2013
(7,813)
(32)
\u2013
(2,784)
(10,629)
\n
Balance at 31 December 2022
(29,426)
(166,111)
(14,021)
(5,500)
(20,129)
235,187
\n
Carrying amount
\n
At 31 December 2021
17,848
56,410
59
\u2013
5,073
79,390
\n
At 31 December 2022
17,848
48,668
42
\u2013
6,800
73,358
\n
Capitalised development cost additions during the year comprised of internal staff costs of \u20ac2,062k (2021: \u20ac1,708k)
\n
and other internally generated additions of \u20ac2,449k (2021: \u20ac2,689k). Development costs have been capitalised in
\n
accordance with IAS 38 Intangible Assets and are therefore not treated, for dividend purposes, as a realised loss.
\n
Hostelworld continue to utilise affiliate contracts to generate revenue and continue to pay affiliate partner commissions.
\n
Impairment review
\n
The carrying value of the capitalised development costs balance at 31 December 2022 is \u20ac6,800k (2021: \u20ac5,073k).
\n
Prior year impairment charge of \u20ac367k relates to an impairment of a specific project following a management decision
\n
to cease ongoing investment.
\n
The carrying value of the goodwill balance at 31 December 2022 is \u20ac17,848k (2021: \u20ac17,848k) and relates to an
\n
investment in Hostelworld.com Limited by the Group in 2009. Goodwill, which has an indefinite useful life, is subject
\n
to annual impairment testing, or more frequent testing if there are indicators of impairment. Following impairment
\n
testing based on the assumptions below, no impairment was recognised for goodwill in the current or prior year.
\n
The carrying value of the Group\u2019s domain names and certain technology assets, referred to henceforth as \u2018intellectual
\n
property\u2019 at 31 December 2022 is \u20ac48,668k (2021: \u20ac56,410k). Following impairment testing based on the
\n
assumptions below, no impairment was recognised for the Group\u2019s intellectual property in the current or prior year.
Cash generating units (CGUs) to which goodwill and intellectual property have been allocated represent the lowest
\n
level at which the assets are monitored for internal reporting purposes. Goodwill has not been allocated across
\n
CGUs as it is not possible to identify separate CGUs. The recoverable amount of goodwill and intellectual property
\n
allocated to a CGU is determined based on a value in use computation, which represents the highest value
\n
attributed to the assets. The key assumptions for calculating value in use of the CGUs are discount rates, growth
\n
rates and cash flows. All three assumptions are based on the Group\u2019s budgeting and forecasting process which
\n
we describe in detail.
\n
Group budgeting and forecasting assumptions used within impairment analysis
\n
Our impairment reviews are based on the 2023 budget which has been prepared on a 12-month calendar basis, and
\n
a further Board approved four-year outlook. Revenue and marketing costs projections, within Budget 2023, have
\n
been developed by triangulating three different models, where each model output has helped to validate the others.
\n
1.
Regional level forecasting reflecting an easing of the remaining travel restrictions in place. From 2020 through
\n
2022 we can evidence a correlated increase in revenue when borders reopen. We have assumed a full recovery
\n
to pre-pandemic booking levels in 2023 in our largest markets, with other markets taking longer. Forecasting at
\n
a regional level allows us to forecast specific bed prices, booking models, geo mix and seasonality effectively
\n
in our modelling;
\n
2.
Channel mix between free and paid customers where assumptions are made based on volume of new customer
\n
acquisitions, cost of customer acquisitions and anticipated bookings based on marketing spend;
\n
3.
Modelling new and returning customers by using statistical models built using over 15 years of customer data.
\n
This rich customer cohort data set enables us to model recurring revenue streams, with a high degree of
\n
predictability. We layer in additional knowledge on new customer acquisition costs and expected economics
\n
between free and paid customers.
\n
Forecasting at this regional and channel level also allows us to adjust for bed price inflation and cost of living pressures.
\n
These risks are somewhat mitigated as our target 18-34
-year-old population typically have the means and the flexibility
\n
to travel, tending to view it as a \u2018rite of passage\u2019 rather than purely discretionary spend. Our strategy focuses on
\n
customers connecting on a free platform that we provide, and hostels are a budget friendly option to travel.
\n
We have assumed in Budget 2023 a modest contraction in our ABV year on year, provisioning for unit bed price
\n
deflation versus 2022 and increased volume from Asian markets, where bed prices are lower. We have modelled
\n
modest price inflation in our operating costs.
\n
Within our four-year outlook we unwind the recovery of the remaining travel restrictions in place. We have modelled
\n
our 2022 cancellation rate for each year (which we consider heightened due to the volume of flight cancellations
\n
and disruption in 2022 and the impact of the Omicron variant in Q1 2022). Over the four-year period we have
\n
assumed growth in revenue projections, beyond 2019 volumes. This is underpinned by an improved modernised
\n
platform, a growth in return customer revenue volumes (which are statistically modelled), a growth in supply and
\n
the development of our social strategy.
10. Intangible assets
continued
\n
Consideration of climate related risks
\n
Climate related risks can impact our business as a customer may not want to travel, a hostel may be forced to close,
\n
or an area is not accessible. Revenue cashflows included in the budgeting process have captured, for example,
\n
the impacts of adverse weather conditions experienced by the Group in 2022 as we model based on historic run
\n
rates at a country and seasonal level. Any further decline in revenue growth rates which could impact the Group
\n
are represented by a decline in revenue growth rates included in the sensitivity analysis below.
\n
Discount rate applied
\n
2022
2021
\n
Pre-tax discount rate: Goodwill
16.89%
14.9%
\n
Pre-tax discount rate: Intellectual Property
17.85%
15.57%
\n
The pre-tax discount rates are based on the Group\u2019s weighted average cost of capital, calculated using the Capital
\n
Asset Pricing Model adjusted for the Group\u2019s specific beta coefficient together with a country risk premium to take
\n
account of the countries from where the CGU derives its cash flows.
\n
Discount rates have increased year on year primarily driven by movement in government bond yields in 2022
\n
which reflects market movements such as rising inflation and energy costs and global macro-economic factors
\n
including the war in Ukraine.
\n
Cash flows
\n
The cash flow projections are based on a Board approved 2023 budget and further four-year outlook described
\n
previously. In preparing the Board approved 2023 budget and further four-year outlook, management have based
\n
projections on historical performance and recovery of regions from COVID-19, together with management\u2019s
\n
expectation of future trends, primarily the social strategy. Management have also considered the Group\u2019s history
\n
of earnings and core strategic initiatives including improving the competitiveness of our core OTA business and
\n
platform modernisation.
\n
Within cash flows management have also considered capital expenditure requirements to maintain the CGU\u2019s
\n
performance and profitability. Working capital requirements are forecast to move in line with activity.
\n
Growth rates
\n
Growth rates are assessed based on the Board approved 2023 budget and further four-year outlook. For goodwill
\n
growth rates included in the 2023 budget and further four-year outlook ranged from 26% to 8% (2021: 220% to
\n
8%). The high growth rate in earlier years reflects the Group\u2019s continuing recovery from COVID-19 as the remaining
\n
travel restrictions ease, with the Budget assuming 2023 is the first full year of recovery for our largest market
\n
Europe. A terminal value of 2% (2021: 2%) growth into perpetuity was used to extrapolate cash flows beyond the
\n
2023 budget and further four-year outlook. This growth rate does not exceed the long-term average growth rate
\n
for the industry in which each CGU operates.
\n
For intellectual property growth rates included beyond the 2023 budget and further four-year outlook ranged from
\n
6% to 2% (2021: 6% to 3%), as the Group expects growth in revenues beyond 2019 volumes underpinned by an
\n
improved modernised platform, a growth in return customer revenue volumes (which we can statistically model),
\n
a growth in supply and the development of our social strategy.
\n
Sensitivity analysis
\n
The key assumptions underlying the impairment reviews are set out above. Sensitivity analysis has been conducted
\n
in respect of goodwill and intellectual property using the following sensitivity assumptions: a 2% increase in the
\n
discount rate; 10% decline in revenue in each year of the Board approved 2023 budget and further four-year
\n
outlook and nil terminal value growth. Under each scenario no impairment was identified.
Sensitivity analysis has been completed on key assumptions in isolation and in combination, and the headroom
\n
included is significant. The key assumptions are discount factor, long term growth rates and growth rates for each
\n
of the Board approved 2023 budget and further four-year outlook.
\n
From our sensitivity analysis we identified that goodwill would need to have nil terminal value growth and an increase
\n
in discount rate of 8% to be considered impaired. In addition, for our intellectual property to be considered impaired,
\n
cashflows would need to stay at 2023 levels (no growth rates apply from 2023 over the remaining useful life to
\n
2033) and the discount rate would need to increase by 1% to be considered impaired. Management consider both of
\n
these scenarios unlikely.
\n
11. Property, plant and equipment
\n
The table below shows the movements in property, plant and equipment for the year:
\n
Right-of-Use
\n
Assets (Leasehold
\n
Property)
\n
Leasehold
\n
Property
\n
Improvements
\n
Fixtures &
\n
Equipment
\n
Computer
\n
Equipment
Total
\n
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
Cost
\n
Balance at 1 January 2021
5,374
1,566
654
3,486
11,080
\n
Additions
116
\u2013
\u2013
75
191
\n
Disposals
(5,036)
(1,034)
(470)
(3,309)
(9,849)
\n
Balance at 31 December 2021
454
532
184
252
1,422
\n
Additions
1,396
\u2013
\u2013
196
1,592
\n
Disposals
(573)
\u2013
(26)
(3)
(602)
\n
Balance at 31 December 2022
1,277
532
158
445
2,412
\n
Accumulated depreciation
\n
Balance at 1 January 2021
(2,087)
(893)
(504)
(3,116)
(6,600)
\n
Charge for year
(960)
(186)
(60)
(313)
(1,519)
\n
Disposals
2,665
612
413
3,296
6,986
\n
Foreign exchange
4
\u2013
\u2013
\u2013
4
\n
Balance at 31 December 2021
(378)
(467)
(151)
(133)
(1,129)
\n
Charge for year
(791)
(62)
(20)
(95)
(968)
\n
Disposals
390
\u2013
26
2
418
\n
Foreign exchange
2
\u2013
\u2013
\u2013
2
\n
Balance at 31 December 2022
(777)
(529)
(145)
(226)
(1,677)
\n
Carrying amount
\n
At 31 December 2021
76
65
33
119
293
\n
At 31 December 2022
500
3
13
219
735
\n
Right-of-use assets relate to the Group\u2019s lease commitments for office space in Ireland, Portugal and China. In
\n
August 2021 the Group exited their long-term lease commitments for its Dublin and London offices. In the current
\n
year the Group entered into new lease agreements in Dublin, London, Portugal and China. Further detail is included
\n
in note 14. For the remaining leases the average lease term of leases entered at 31 December 2022 is less than 1
\n
year (2021: less than one year). The maturity analysis of lease liabilities is presented in note 14.
12. Deferred taxation
\n
The following are the major deferred taxation assets recognised by the Group and movements thereon during the
\n
current and prior reporting year. Deferred tax assets primarily relating to temporary differences between the carrying
\n
value of intangible assets and their tax base. The Group does not have any deferred tax liabilities (2021: \u20acnil).
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Opening balance
8,352
7,596
\n
Credited to the consolidated income statement
822
756
\n
Closing balance
9,174
8,352
\n
The deferred tax credit for the year ended 31 December 2022 of \u20ac822k (2021: \u20ac756k) relates to a deferred tax asset
\n
created in the current year for capital allowances not utilised and available for future offset. Deferred tax is determined
\n
using tax rates and laws enacted or substantively enacted by the reporting date. The total tax charge in future periods
\n
will be affected by any changes to the applicable tax rates in force in jurisdictions in which the Group operates and
\n
other relevant changes in tax legislation.
\n
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against
\n
which any unused tax losses and unused tax credits can be utilised. Further detail is included within note 2 to the
\n
financial statements.
\n
13. Investment in associate
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Opening balance
1,186
2,349
\n
Share of results of associate
(206)
(225)
\n
Capital reduction
\u2013
(938)
\n
Closing balance
980
1,186
\n
The Group holds an investment in Goki Pty Limited, an Australian resident company. Goki Pty Limited\u2019s principal activity
\n
is software development and principal place of business is Australia. The investment in an associate is accounted
\n
for using the equity method.
\n
When the initial investment was made the Group had significant influence but not control over the entity, due to the
\n
nature of its voting rights. The Group controlled 49% of the voting rights and was entitled to appoint 50% or more
\n
of the total number of Directors to the Board.
\n
On 7 July 2021 the directors of Goki PTY Limited approved a reduction in the investment held by Hostelworld.com
\n
Limited in the company. The shareholding was reduced from 49% to 31.5% through means of a capital reduction.
\n
Hostelworld.com Limited retains one Board seat, out of four, and continues to exert significant influence over the
\n
company. Hostelworld.com Limited will continue to account for Goki PTY Limited as an associate.
\n
The original purchase consideration for the investment in Goki PTY Limited was USD 3,000k. Following the completion
\n
of the reduction in investment total purchase consideration reduced to USD 1,890k. Final payment of \u20ac345k deferred
\n
consideration was made in 2021.
\n
In 2022 and 2021 the Group share of results of the associate was a loss as Goki PTY Limited is a start-up company.
\n
An impairment review was performed by management and no impairment was identified.
\n
Summarised financial information in respect of Goki Pty Limited is set out below. This represents the amounts in
\n
Goki Pty Limited\u2019s financial statements prepared in accordance with IFRSs.
Statement of financial position of Goki Pty Limited as at 31 December 2022:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current assets
8
7
\n
Current assets
825
354
\n
Current liabilities
(1,197)
(70)
\n
Equity attributable to owners of the company
(364)
291
\n
Income statement of Goki Pty Limited for the year ended 31 December 2022:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Revenue
942
430
\n
Loss after tax
(654)
(502)
\n
Other comprehensive income attributable to the owners of the company
\u2013
\u2013
\n
Total comprehensive loss
(654)
(502)
\n
Group share of results of associate
(206)
(225)
\n
*
\n
*
\n
Relates to Group share of results of associate of 49% from 1 Jan until 7 July 2021 and 31.5% from 7 July 2021 to 31 December 2021.
\n
Reconciliation of the above summarised financial information to the carrying amount of the Group\u2019s interest in Goki
\n
Pty Limited recognised in the consolidated financial statements:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Net assets of Goki Pty Limited
(364)
291
\n
Proportion of the Group\u2019s ownership interest in the associate
31.5%
31.5%
\n
Group share of net assets
(114)
92
\n
Goodwill and transaction costs
1,930
1,930
\n
Other adjustments
(836)
(836)
\n
Carrying amount of the Group\u2019s interest in associate
980
1,186
\n
Other adjustments relate to the elimination of the Group\u2019s 31.5% (2021: 31.5%) equity investment within the net assets
\n
of Goki Pty Limited and amounts to 31.5% (2021: 31.5%) of the share capital of Goki PTY Limited.
\n
Commitment to extend loan to associate
\n
Under the terms of the original shareholder purchase agreement, there was a USD 500k loan facility option available
\n
to Goki Pty Limited by the Group until July 2022. The loan facility was not extended and on 7 July 2021 was not
\n
included as part of the revised shareholder\u2019s agreement.
\n
Convertible loan note
\n
On 31 May 2022 Goki Pty Limited entered into a USD$ 1m convertible note subscription deed with an Australian
\n
special purpose vehicle (SPV). It is unsecured, has a 2-year maturity date, and does not bear interest. It is convertible
\n
to 10% of the ordinary shareholding of Goki Pty Limited any time until its maturity, at the discretion of either party.
\n
If the noteholder converts to ordinary share of Goki Pty Limited, it would result in the Group\u2019s shareholding
\nreducing to 28.6%.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14507": { "value": "
Goodwill
\n
Domain
\n
Names
Technology
\n
Affiliates
\n
Contracts
\n
Capitalised
\n
Development
\n
Costs
Total
\n
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
Cost
\n
Balance at 1 January 2021
47,274
214,708
14,100
5,500
18,021
299,603
\n
Additions
\u2013
\u2013
\u2013
\u2013
4,397
4,397
\n
Disposals for the year
\u2013
\u2013
(52)
\u2013
\u2013
(52)
\n
Balance at 31 December 2021
47,274
214,708
14,048
5,500
22,418
303,948
\n
Additions
\u2013
71
15
\u2013
4,511
4,597
\n
Balance at 31 December 2022
47,274
214,779
14,063
5,500
26,929
308,545
\n
Accumulated amortisation
\n
and impairment
\n
Balance at 1 January 2021
(29,426)
(150,488)
(13,922)
(5,500)
(14,015)
(213,351)
\n
Charge for year
\u2013
(7,810)
(119)
\u2013
(2,963)
(10,892)
\n
Disposals for the year
\u2013
\u2013
52
\u2013
\u2013
52
\n
Impairment recognised
\u2013
\u2013
\u2013
\u2013
(367)
(367)
\n
Balance at 31 December 2021
(29,426)
(158,298)
(13,989)
(5,500)
(17,345)
(224,558)
\n
Charge for year
\u2013
(7,813)
(32)
\u2013
(2,784)
(10,629)
\n
Balance at 31 December 2022
(29,426)
(166,111)
(14,021)
(5,500)
(20,129)
235,187
\n
Carrying amount
\n
At 31 December 2021
17,848
56,410
59
\u2013
5,073
79,390
\n
At 31 December 2022
17,848
48,668
42
\u2013
6,800
73,358
Right-of-Use
\n
Assets (Leasehold
\n
Property)
\n
Leasehold
\n
Property
\n
Improvements
\n
Fixtures &
\n
Equipment
\n
Computer
\n
Equipment
Total
\n
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
Cost
\n
Balance at 1 January 2021
5,374
1,566
654
3,486
11,080
\n
Additions
116
\u2013
\u2013
75
191
\n
Disposals
(5,036)
(1,034)
(470)
(3,309)
(9,849)
\n
Balance at 31 December 2021
454
532
184
252
1,422
\n
Additions
1,396
\u2013
\u2013
196
1,592
\n
Disposals
(573)
\u2013
(26)
(3)
(602)
\n
Balance at 31 December 2022
1,277
532
158
445
2,412
\n
Accumulated depreciation
\n
Balance at 1 January 2021
(2,087)
(893)
(504)
(3,116)
(6,600)
\n
Charge for year
(960)
(186)
(60)
(313)
(1,519)
\n
Disposals
2,665
612
413
3,296
6,986
\n
Foreign exchange
4
\u2013
\u2013
\u2013
4
\n
Balance at 31 December 2021
(378)
(467)
(151)
(133)
(1,129)
\n
Charge for year
(791)
(62)
(20)
(95)
(968)
\n
Disposals
390
\u2013
26
2
418
\n
Foreign exchange
2
\u2013
\u2013
\u2013
2
\n
Balance at 31 December 2022
(777)
(529)
(145)
(226)
(1,677)
\n
Carrying amount
\n
At 31 December 2021
76
65
33
119
293
\n
At 31 December 2022
500
3
13
219
735
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14638": { "value": "Impairment review
The carrying value of the capitalised development costs balance at 31 December 2022 is \u20ac6,800k (2021: \u20ac5,073k).
\n
Prior year impairment charge of \u20ac367k relates to an impairment of a specific project following a management decision
\n
to cease ongoing investment.
\n
The carrying value of the goodwill balance at 31 December 2022 is \u20ac17,848k (2021: \u20ac17,848k) and relates to an
\n
investment in Hostelworld.com Limited by the Group in 2009. Goodwill, which has an indefinite useful life, is subject
\n
to annual impairment testing, or more frequent testing if there are indicators of impairment. Following impairment
\n
testing based on the assumptions below, no impairment was recognised for goodwill in the current or prior year.
\n
The carrying value of the Group\u2019s domain names and certain technology assets, referred to henceforth as \u2018intellectual
\n
property\u2019 at 31 December 2022 is \u20ac48,668k (2021: \u20ac56,410k). Following impairment testing based on the
\n
assumptions below, no impairment was recognised for the Group\u2019s intellectual property in the current or prior year.
Cash generating units (CGUs) to which goodwill and intellectual property have been allocated represent the lowest
\n
level at which the assets are monitored for internal reporting purposes. Goodwill has not been allocated across
\n
CGUs as it is not possible to identify separate CGUs. The recoverable amount of goodwill and intellectual property
\n
allocated to a CGU is determined based on a value in use computation, which represents the highest value
\n
attributed to the assets. The key assumptions for calculating value in use of the CGUs are discount rates, growth
\n
rates and cash flows. All three assumptions are based on the Group\u2019s budgeting and forecasting process which
\nwe describe in detail.", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14804": { "value": "11. Property, plant and equipment
The table below shows the movements in property, plant and equipment for the year:
\n
Right-of-Use
\n
Assets (Leasehold
\n
Property)
\n
Leasehold
\n
Property
\n
Improvements
\n
Fixtures &
\n
Equipment
\n
Computer
\n
Equipment
Total
\n
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
Cost
\n
Balance at 1 January 2021
5,374
1,566
654
3,486
11,080
\n
Additions
116
\u2013
\u2013
75
191
\n
Disposals
(5,036)
(1,034)
(470)
(3,309)
(9,849)
\n
Balance at 31 December 2021
454
532
184
252
1,422
\n
Additions
1,396
\u2013
\u2013
196
1,592
\n
Disposals
(573)
\u2013
(26)
(3)
(602)
\n
Balance at 31 December 2022
1,277
532
158
445
2,412
\n
Accumulated depreciation
\n
Balance at 1 January 2021
(2,087)
(893)
(504)
(3,116)
(6,600)
\n
Charge for year
(960)
(186)
(60)
(313)
(1,519)
\n
Disposals
2,665
612
413
3,296
6,986
\n
Foreign exchange
4
\u2013
\u2013
\u2013
4
\n
Balance at 31 December 2021
(378)
(467)
(151)
(133)
(1,129)
\n
Charge for year
(791)
(62)
(20)
(95)
(968)
\n
Disposals
390
\u2013
26
2
418
\n
Foreign exchange
2
\u2013
\u2013
\u2013
2
\n
Balance at 31 December 2022
(777)
(529)
(145)
(226)
(1,677)
\n
Carrying amount
\n
At 31 December 2021
76
65
33
119
293
\n
At 31 December 2022
500
3
13
219
735
\n
Right-of-use assets relate to the Group\u2019s lease commitments for office space in Ireland, Portugal and China. In
\n
August 2021 the Group exited their long-term lease commitments for its Dublin and London offices. In the current
\n
year the Group entered into new lease agreements in Dublin, London, Portugal and China. Further detail is included
\n
in note 14. For the remaining leases the average lease term of leases entered at 31 December 2022 is less than 1
\nyear (2021: less than one year). The maturity analysis of lease liabilities is presented in note 14.", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14953": { "value": "12. Deferred taxation
The following are the major deferred taxation assets recognised by the Group and movements thereon during the
\n
current and prior reporting year. Deferred tax assets primarily relating to temporary differences between the carrying
\n
value of intangible assets and their tax base. The Group does not have any deferred tax liabilities (2021: \u20acnil).
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Opening balance
8,352
7,596
\n
Credited to the consolidated income statement
822
756
\n
Closing balance
9,174
8,352
\n
The deferred tax credit for the year ended 31 December 2022 of \u20ac822k (2021: \u20ac756k) relates to a deferred tax asset
\n
created in the current year for capital allowances not utilised and available for future offset. Deferred tax is determined
\n
using tax rates and laws enacted or substantively enacted by the reporting date. The total tax charge in future periods
\n
will be affected by any changes to the applicable tax rates in force in jurisdictions in which the Group operates and
\n
other relevant changes in tax legislation.
\n
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against
\n
which any unused tax losses and unused tax credits can be utilised. Further detail is included within note 2 to the
\nfinancial statements.", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f14981": { "value": "13. Investment in associate
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Opening balance
1,186
2,349
\n
Share of results of associate
(206)
(225)
\n
Capital reduction
\u2013
(938)
\n
Closing balance
980
1,186
\n
The Group holds an investment in Goki Pty Limited, an Australian resident company. Goki Pty Limited\u2019s principal activity
\n
is software development and principal place of business is Australia. The investment in an associate is accounted
\n
for using the equity method.
\n
When the initial investment was made the Group had significant influence but not control over the entity, due to the
\n
nature of its voting rights. The Group controlled 49% of the voting rights and was entitled to appoint 50% or more
\n
of the total number of Directors to the Board.
\n
On 7 July 2021 the directors of Goki PTY Limited approved a reduction in the investment held by Hostelworld.com
\n
Limited in the company. The shareholding was reduced from 49% to 31.5% through means of a capital reduction.
\n
Hostelworld.com Limited retains one Board seat, out of four, and continues to exert significant influence over the
\n
company. Hostelworld.com Limited will continue to account for Goki PTY Limited as an associate.
\n
The original purchase consideration for the investment in Goki PTY Limited was USD 3,000k. Following the completion
\n
of the reduction in investment total purchase consideration reduced to USD 1,890k. Final payment of \u20ac345k deferred
\n
consideration was made in 2021.
\n
In 2022 and 2021 the Group share of results of the associate was a loss as Goki PTY Limited is a start-up company.
\n
An impairment review was performed by management and no impairment was identified.
\n
Summarised financial information in respect of Goki Pty Limited is set out below. This represents the amounts in
\n
Goki Pty Limited\u2019s financial statements prepared in accordance with IFRSs.
Statement of financial position of Goki Pty Limited as at 31 December 2022:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current assets
8
7
\n
Current assets
825
354
\n
Current liabilities
(1,197)
(70)
\n
Equity attributable to owners of the company
(364)
291
\n
Income statement of Goki Pty Limited for the year ended 31 December 2022:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Revenue
942
430
\n
Loss after tax
(654)
(502)
\n
Other comprehensive income attributable to the owners of the company
\u2013
\u2013
\n
Total comprehensive loss
(654)
(502)
\n
Group share of results of associate
(206)
(225)
\n
*
\n
*
\n
Relates to Group share of results of associate of 49% from 1 Jan until 7 July 2021 and 31.5% from 7 July 2021 to 31 December 2021.
\n
Reconciliation of the above summarised financial information to the carrying amount of the Group\u2019s interest in Goki
\n
Pty Limited recognised in the consolidated financial statements:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Net assets of Goki Pty Limited
(364)
291
\n
Proportion of the Group\u2019s ownership interest in the associate
31.5%
31.5%
\n
Group share of net assets
(114)
92
\n
Goodwill and transaction costs
1,930
1,930
\n
Other adjustments
(836)
(836)
\n
Carrying amount of the Group\u2019s interest in associate
980
1,186
\n
Other adjustments relate to the elimination of the Group\u2019s 31.5% (2021: 31.5%) equity investment within the net assets
\n
of Goki Pty Limited and amounts to 31.5% (2021: 31.5%) of the share capital of Goki PTY Limited.
\n
Commitment to extend loan to associate
\n
Under the terms of the original shareholder purchase agreement, there was a USD 500k loan facility option available
\n
to Goki Pty Limited by the Group until July 2022. The loan facility was not extended and on 7 July 2021 was not
\n
included as part of the revised shareholder\u2019s agreement.
\n
Convertible loan note
\n
On 31 May 2022 Goki Pty Limited entered into a USD$ 1m convertible note subscription deed with an Australian
\n
special purpose vehicle (SPV). It is unsecured, has a 2-year maturity date, and does not bear interest. It is convertible
\n
to 10% of the ordinary shareholding of Goki Pty Limited any time until its maturity, at the discretion of either party.
\n
If the noteholder converts to ordinary share of Goki Pty Limited, it would result in the Group\u2019s shareholding
\nreducing to 28.6%.", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15117": { "value": "14. Lease liabilities
Lease liabilities relate to the Group\u2019s lease commitments for office space in Ireland, Portugal, UK and China.
\n
The movement in the Group\u2019s right-of-use assets during the period is set out in note 11. The movement in the Group\u2019s
\n
lease liabilities during the period is as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Opening lease liability
86
4,295
\n
Additions
1,215
82
\n
Remeasurement
(46)
\u2013
\n
Modification
227
33
\n
Disposals
(183)
(3,164)
\n
Payments
(751)
(1,238)
\n
Lease interest expense
31
102
\n
Payment of lease interest expense
(31)
(102)
\n
Foreign exchange differences on lease payments
(1)
78
\n
Closing lease liability
547
86
\n
Total lease payments included in the cash flow amount to \u20ac752k (2021: \u20ac1,160k) relating to lease payments and
\n
related foreign exchange differences on lease payments. There is a clear payment schedule associated with our
\n
lease liabilities and based on our cash flow forecasts the Group does not face any significant liquidity risk with
\n
regards to its lease liabilities.
\n
The maturity analysis of these lease liabilities is as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Maturity analysis
\n
Within one year
558
85
\n
Between one and five years
\u2013
\u2013
\n
Over 5 years
\u2013
\u2013
\n
Less unearned interest
(11)
1
\n
Total
547
86
\n
These liabilities are classified in the consolidated statement of financial position as:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current lease liabilities
\u2013
\u2013
\n
Current lease liabilities
547
86
\n
Total
547
86
The Group has used the following practical expedients permitted by the standard on transition and at each reporting
\n
date \u2013 the use of a single discount rate to a portfolio of leases with reasonably similar characteristics, the accounting
\n
for operating leases with a remaining lease term of less than 12 months as at 1 January 2020 as short-term leases
\n
and the use of hindsight in determining the lease term where the contract contains options to extend or terminate
\n
the lease. The Group has elected not to reassess whether a contract is or contains a lease at the date of initial
\n
application. Instead, for contracts entered into before the transition date the Group relied on its assessment made
\n
applying IAS 17 and IFRIC 4 \u2018Determining whether an Arrangement contains a Lease\u2019
.
\n
Amounts recognised in consolidated income statement:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Net profit on disposal of leases
(1)
(793)
\n
Depreciation expense on right-of-use assets
791
958
\n
Interest expense on lease liabilities
31
102
\n
Expense relating to short term leases
321
429
\n
Total
1,142
696
\n
At 31 December 2022, the Group is not committed to any short-term leases (2021: \u20ac103k). Total cash outflow for
\nshort term amounted to \u20ac134k during 2022 (2021: \u20ac549k) and are included within operating cashflows.", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15238": { "value": "15. Trade and other receivables
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Amounts falling due within one year
\n
Trade receivables
611
220
\n
Prepayments and other receivables
1,265
978
\n
Value added tax
1,370
804
\n
Total
3,246
2,002
\n
Due to their short-term nature, the carrying value of trade and other receivables is deemed to be their fair value.
\n
Trade receivables are non-interest bearing and trade receivable days are 5 days (2021: 5 days).
\n
Trade receivables primarily relates to VAT to be recovered from Irish hostels and amounts due from the Group\u2019s
\n
payment processing agents, which are due for maturity within 5 days. The Group always recognises lifetime expected
\n
credit losses (ECLs) for trade receivables estimated using a provision matrix based on the Group\u2019s historical credit
\n
loss experience including an assessment of the volume of debt recovered from aged COVID-19 volumes, adjusted
\n
for factors that are specific to the debtors, general economic conditions and an assessment of both the current as
\n
well as the forecast direction of conditions at the reporting date, including time value of money where appropriate.
\n
Movement in the expected credit loss for trade receivables is as follows:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
At the beginning of the year
65
194
\n
Decrease in loss allowance recognised during the year
(18)
(129)
\n
At the end of the year
47
65
\nThe net movement in the expected credit loss has been disclosed in the consolidated income statement.", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15241": { "value": "2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Amounts falling due within one year
\n
Trade receivables
611
220
\n
Prepayments and other receivables
1,265
978
\n
Value added tax
1,370
804
\n
Total
3,246
2,002", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15269": { "value": "Movement in the expected credit loss for trade receivables is as follows:
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
At the beginning of the year
65
194
\n
Decrease in loss allowance recognised during the year
(18)
(129)
\n
At the end of the year
47
65
The net movement in the expected credit loss has been disclosed in the consolidated income statement.", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15297": { "value": "16. Cash and cash equivalents
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current assets
\n
Cash and cash equivalents
750
750
\n
*
\n
Total
750
750
\n
Current assets
\n
Cash and cash equivalents
18,212
24,517
\n
*
\n
Total
18,212
24,517
\n
*
\n
Upon review of the April 2022 IFRIC Agenda item \u201cDemand Deposits with Restrictions on Use arising from a Contract with a Third Party (IAS 7 Statement
\n
of Cash Flows)\u2014Agenda Paper 3\u201d the Group has changed the presentation of cash and cash equivalents which are not available for use for the period
\n
ended 31 December 2022. The amount of \u20ac750k, which relates to a rental guarantee in place, has been classified in non-current assets as the guarantee
\n
is in place for a period of longer than 12 months after balance sheet date. As the amount is held in a bank account which can be accessed by the Group
\n
the amount has been disclosed as a cash and cash equivalent.
\nBalance of cash and cash equivalents comprise cash and short-term bank deposits only.", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15320": { "value": "*
Upon review of the April 2022 IFRIC Agenda item \u201cDemand Deposits with Restrictions on Use arising from a Contract with a Third Party (IAS 7 Statement
\n
of Cash Flows)\u2014Agenda Paper 3\u201d the Group has changed the presentation of cash and cash equivalents which are not available for use for the period
\n
ended 31 December 2022. The amount of \u20ac750k, which relates to a rental guarantee in place, has been classified in non-current assets as the guarantee
\n
is in place for a period of longer than 12 months after balance sheet date. As the amount is held in a bank account which can be accessed by the Group
\nthe amount has been disclosed as a cash and cash equivalent.", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15321": { "value": "*
Upon review of the April 2022 IFRIC Agenda item \u201cDemand Deposits with Restrictions on Use arising from a Contract with a Third Party (IAS 7 Statement
\n
of Cash Flows)\u2014Agenda Paper 3\u201d the Group has changed the presentation of cash and cash equivalents which are not available for use for the period
\n
ended 31 December 2022. The amount of \u20ac750k, which relates to a rental guarantee in place, has been classified in non-current assets as the guarantee
\n
is in place for a period of longer than 12 months after balance sheet date. As the amount is held in a bank account which can be accessed by the Group
\n
the amount has been disclosed as a cash and cash equivalent.
Balance of cash and cash equivalents comprise cash and short-term bank deposits only.", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15334": { "value": "17. Share capital
No of shares
\n
of \u20ac0.01 each
\n
Ordinary
\n
shares
\n
Share
\n
premium
Total
\n
(Thousands)
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
At 1 January 2021 and 31 December 2021
116,321
1,163
14,328
15,491
\n
Share issue \u2013 22 February 2022
1,184
12
\u2013
12
\n
Share issue \u2013 30 September 2022
6
\u2013
\u2013
-
\n
At 31 December 2022
117,511
1,175
14,328
15,503
\n
The Group has one class of ordinary shares which carries no right to fixed income. The share capital of the Group
\n
is represented by the share capital of the parent Company, Hostelworld Group plc. All the Company\u2019s shares are
\n
allotted, called up, fully paid and quoted on the London Stock Exchange and Euronext Dublin.
\n
On 19 February 2021, the Group agreed to issue warrants of 3,315,153 ordinary shares of \u20ac0.01 each in the capital
\n
of Hostelworld (equivalent to 2.85% of Hostelworld\u2019s issued share capital at the time of warrants issue). As at
\n
31 December 2022 no warrants had been exercised. Further detail is included within note 20.
\n
On 22 February 2022, the company issued 1,184,211 shares to satisfy restricted share awards granted by the Company
\n
at a value \u20ac0.01 per share.
\nOn 30 September 2022, the company issued 6,070 shares in relation to the 2019 SAYE at a value of \u20ac0.01 per share.", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15335": { "value": "17. Share capital
No of shares
\n
of \u20ac0.01 each
\n
Ordinary
\n
shares
\n
Share
\n
premium
Total
\n
(Thousands)
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
At 1 January 2021 and 31 December 2021
116,321
1,163
14,328
15,491
\n
Share issue \u2013 22 February 2022
1,184
12
\u2013
12
\n
Share issue \u2013 30 September 2022
6
\u2013
\u2013
-
\n
At 31 December 2022
117,511
1,175
14,328
15,503
\n
The Group has one class of ordinary shares which carries no right to fixed income. The share capital of the Group
\n
is represented by the share capital of the parent Company, Hostelworld Group plc. All the Company\u2019s shares are
\n
allotted, called up, fully paid and quoted on the London Stock Exchange and Euronext Dublin.
\n
On 19 February 2021, the Group agreed to issue warrants of 3,315,153 ordinary shares of \u20ac0.01 each in the capital
\n
of Hostelworld (equivalent to 2.85% of Hostelworld\u2019s issued share capital at the time of warrants issue). As at
\n
31 December 2022 no warrants had been exercised. Further detail is included within note 20.
\n
On 22 February 2022, the company issued 1,184,211 shares to satisfy restricted share awards granted by the Company
\n
at a value \u20ac0.01 per share.
\n
On 30 September 2022, the company issued 6,070 shares in relation to the 2019 SAYE at a value of \u20ac0.01 per share.
18. Other reserves
\n
The analysis of movement in reserves is shown in the statement of changes in equity.
\n
Reconciliation and movement of amounts included in other reserves are set out below:
\n
Foreign currency
\n
translation
\n
reserve (a)
\n
Share based
\n
payment
\n
reserve (b)
\n
Warrant
\n
reserve (c)
\n
Total other
\n
reserves
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
Balance at 1 January 2021
8
1,210
\u2013
1,218
\n
Exchange differences on translation
\n
of foreign operations
32
\u2013
\u2013
32
\n
Issue of warrants
20
\u2013
\u2013
3,073
3,073
\n
Credit to equity for equity settled
\n
share-based payments
\u2013
2,152
\u2013
2,152
\n
Balance at 31 December 2021
40
3,362
3,073
6,475
\n
Exchange differences on translation
\n
of foreign operations
(11)
\u2013
\u2013
(11)
\n
Transfer of exercised and
\n
expired share-based awards
\u2013
(2,431)
\u2013
(2,431)
\n
Credit to equity for equity settled
\n
share-based payments
\u2013
2,399
\u2013
2,399
\n
Balance at 31 December 2022
29
3,330
3,073
6,432
\n
(a) Foreign currency translation reserve
\n
The foreign currency reserve reflects the foreign exchange gains and losses arising from the translation of the Group\u2019s
\n
net investment in foreign operations.
\n
(b) Share-based payment reserve
\n
The share-based payment reserve reflects the equity settled share-based payment plans in operation by the Group
\n
(note 22).
\n
(c) Warrant reserve
\n
The warrant reserve relates to the warrants exercisable with HPS Investment Partners LLC (or subsidiaries or affiliates
\n
thereof) (note 20
).", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15391": { "value": "18. Other reserves
The analysis of movement in reserves is shown in the statement of changes in equity.
\n
Reconciliation and movement of amounts included in other reserves are set out below:
\n
Foreign currency
\n
translation
\n
reserve (a)
\n
Share based
\n
payment
\n
reserve (b)
\n
Warrant
\n
reserve (c)
\n
Total other
\n
reserves
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
Balance at 1 January 2021
8
1,210
\u2013
1,218
\n
Exchange differences on translation
\n
of foreign operations
32
\u2013
\u2013
32
\n
Issue of warrants
20
\u2013
\u2013
3,073
3,073
\n
Credit to equity for equity settled
\n
share-based payments
\u2013
2,152
\u2013
2,152
\n
Balance at 31 December 2021
40
3,362
3,073
6,475
\n
Exchange differences on translation
\n
of foreign operations
(11)
\u2013
\u2013
(11)
\n
Transfer of exercised and
\n
expired share-based awards
\u2013
(2,431)
\u2013
(2,431)
\n
Credit to equity for equity settled
\n
share-based payments
\u2013
2,399
\u2013
2,399
\n
Balance at 31 December 2022
29
3,330
3,073
6,432
\n
(a) Foreign currency translation reserve
\n
The foreign currency reserve reflects the foreign exchange gains and losses arising from the translation of the Group\u2019s
\n
net investment in foreign operations.
\n
(b) Share-based payment reserve
\n
The share-based payment reserve reflects the equity settled share-based payment plans in operation by the Group
\n
(note 22).
\n
(c) Warrant reserve
\n
The warrant reserve relates to the warrants exercisable with HPS Investment Partners LLC (or subsidiaries or affiliates
\n
thereof) (note 20
).", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15483": { "value": "19. Trade and other payables
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current liabilities
\n
Payroll taxes
9,438
8,049
\n
Total
9,438
8,049
\n
The Group has availed of the Irish Revenue tax warehousing scheme and deferred payment on all Irish employer
\n
taxes arising during the period from February 2021 to March 2022. Total amount warehoused at 31 December 2022
\n
amounted to \u20ac9,438k (2021: \u20ac8,049k). The Group continues to liaise with Irish Revenue on the matter and comply with
\n
all appropriate guidelines applicable. At 31 December 2022 amounts warehoused are recognised as non-current
\n
reflecting the intention and unconditional right not to repay balance within 12 months. The Group have agreed
\n
with the Irish Revenue to commence a repayment schedule in April 2024.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Current liabilities
\n
Trade payables
3,944
5,425
\n
Accruals and other payables
5,136
6,113
\n
Deferred revenue
3,201
1,036
\n
Payroll taxes
582
221
\n
Total
12,863
12,795
\n
At 31 December 2022, \u20ac3,005k of revenue was deferred relating to free cancellation bookings (2021: \u20ac1,020k), \u20ac178k
\n
was deferred relating to featured listings (2021: \u20ac16k) and \u20ac18k was deferred relating to Roamies (2021: \u20acnil).
\n
Included in accruals and other payables is a credit provision amounting to \u20ac150k (2021: \u20ac1,300k) for vouchers and
\n
incentives to customers for use on future bookings reflecting the expected value attached to vouchers. Reduction
\n
year on year relates to utilisation rates which materialised during 2022 where a reduced cohort of customers used their
\n
vouchers than what the Group have historically experienced and takes account of a large volume of vouchers expiring
\n
in Q1 2023 for customers who obtained a voucher instead of a refund during COVID-19. There is uncertainty on
\n
the value of the credit provision given it is based on the probability that a customer will use their voucher. The
\n
provision has not been discounted.
\n
Also included in accruals and other payables is an amount of \u20ac1,778k (2021: \u20ac2,017k) relating to customers who have
\n
cancelled their free cancellation booking but have not yet been refunded.
\n
The average credit period for the Group in respect of trade payables is 20 days (2021: 54 days). The Directors consider
\n
that the carrying amount of trade and other payables is deemed to be to their fair value.
\n
Unpaid pension contributions at 31 December 2022 amounted to \u20ac64k (2021: Nil), which were paid in full in
\nJanuary 2023.", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15484": { "value": "19. Trade and other payables
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current liabilities
\n
Payroll taxes
9,438
8,049
\n
Total
9,438
8,049
\n
The Group has availed of the Irish Revenue tax warehousing scheme and deferred payment on all Irish employer
\n
taxes arising during the period from February 2021 to March 2022. Total amount warehoused at 31 December 2022
\n
amounted to \u20ac9,438k (2021: \u20ac8,049k). The Group continues to liaise with Irish Revenue on the matter and comply with
\n
all appropriate guidelines applicable. At 31 December 2022 amounts warehoused are recognised as non-current
\n
reflecting the intention and unconditional right not to repay balance within 12 months. The Group have agreed
\n
with the Irish Revenue to commence a repayment schedule in April 2024.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Current liabilities
\n
Trade payables
3,944
5,425
\n
Accruals and other payables
5,136
6,113
\n
Deferred revenue
3,201
1,036
\n
Payroll taxes
582
221
\n
Total
12,863
12,795
\n
At 31 December 2022, \u20ac3,005k of revenue was deferred relating to free cancellation bookings (2021: \u20ac1,020k), \u20ac178k
\n
was deferred relating to featured listings (2021: \u20ac16k) and \u20ac18k was deferred relating to Roamies (2021: \u20acnil).
\n
Included in accruals and other payables is a credit provision amounting to \u20ac150k (2021: \u20ac1,300k) for vouchers and
\n
incentives to customers for use on future bookings reflecting the expected value attached to vouchers. Reduction
\n
year on year relates to utilisation rates which materialised during 2022 where a reduced cohort of customers used their
\n
vouchers than what the Group have historically experienced and takes account of a large volume of vouchers expiring
\n
in Q1 2023 for customers who obtained a voucher instead of a refund during COVID-19. There is uncertainty on
\n
the value of the credit provision given it is based on the probability that a customer will use their voucher. The
\n
provision has not been discounted.
\n
Also included in accruals and other payables is an amount of \u20ac1,778k (2021: \u20ac2,017k) relating to customers who have
\n
cancelled their free cancellation booking but have not yet been refunded.
\n
The average credit period for the Group in respect of trade payables is 20 days (2021: 54 days). The Directors consider
\n
that the carrying amount of trade and other payables is deemed to be to their fair value.
\n
Unpaid pension contributions at 31 December 2022 amounted to \u20ac64k (2021: Nil), which were paid in full in
\n
January 2023.
20. Borrowings
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Opening Balance
28,209
1,164
\n
Received on Drawdown
\u2013
28,800
\n
Repayments
\u2013
(1,164)
\n
Loan issuance costs \u2013 issue of warrants
\u2013
(3,073)
\n
Transaction costs relating to borrowings
\u2013
(862)
\n
Finance costs
4,243
3,344
\n
Finance interest paid
(1,339)
\u2013
\n
Total
31,113
28,209
\n
On 19 February 2021 the Group signed a \u20ac30m five-year term loan facility with certain investment funds and accounts
\n
of HPS Investment Partners LLC (or subsidiaries or affiliates thereof). The facility is single drawdown and bears
\n
interest at a margin of 9.0% per annum over EURIBOR (with a EURIBOR floor of 0.25% per annum). In the first year
\n
following drawdown, all interest was rolled up and capitalised. Between the first and third anniversaries of drawdown,
\n
Hostelworld elected to capitalise 4.0% per annum of the accruing interest with the balance of the interest during
\n
that period (and all interest accruing after the third anniversary of drawdown) being cash pay.
\n
The facility agreement includes the following financial covenants: (1) adjusted net leverage (Hostelworld has to ensure
\n
that total net debt is no more than 3.0 x adjusted EBITDA from 31 December 2023 to 30 September 2024, and no more
\n
than 2.5 x adjusted EBITDA from 31 December 2024 onwards); and (2
) minimum liquidity (Hostelworld has to ensure
\n
that at close of business on the last business day of each month until it is testing the adjusted net leverage ratios
\n
there is free cash in members of the Group which have guaranteed repayment of the facility of at least \u20ac6.0 million).
\n
The lenders have the right to require repayment of the facility if Hostelworld is subject to a change in control and
\n
Hostelworld has the option to repay the facility early. If the facility is repaid for any reason within the first four years
\n
of its term a prepayment fee is payable as follows: if repayment is made (1) in the first two years after drawdown then
\n
all interest from the date of repayment to the second anniversary of drawdown is due, plus a 2% fee of the amount
\n
repaid, (2) between the second and the third anniversary of drawdown the fee is 2% of the amount repaid and
\n
(3) between the third and fourth anniversary of drawdown the fee is 1% of the amount repaid.
\n
Hostelworld and its principal trading subsidiaries will guarantee repayment of the facility and amounts payable under
\n
it and provide the lenders with a customary security package over their assets. Cash dividends to shareholders are
\n
permitted provided total net debt is below 2.0 x adjusted EBITDA, no events of default are ongoing and the above
\n
stated minimum liquidity covenant will be complied with after taking into account the proposed dividends. The Group
\n
is required to fund any new acquisitions through new equity and/or through a maximum of 50% of retained excess
\n
cashflow. Any acquisition by the Group of the remaining shareholdings in Goki PTY Limited and Counter App Limited
\n
is required to be funded from cash on the balance sheet.
\n
An amount of \u20ac28.8m was received on 23 February 2021, net of original issue discount.
\n
Issue of warrants:
\n
In connection with the facility, Hostelworld has agreed to issue warrants over 3,315,153 ordinary shares of \u20ac0.01 each
\n
in the capital of Hostelworld (equivalent to 2.85% of Hostelworld\u2019s current issued share capital at the time of issue
\n
of the warrants) to the lender. The warrants may be exercised at any time during the term of the loan and for a
\n
twelve-month period following its scheduled termination at an exercise price of \u20ac0.01 per ordinary share. Shares
\n
issued will be the same class and carry the same rights as existing shares. An amount of \u20ac3,073k was recorded for
\n
the initial recognition of the warrants calculated on the basis of the market price of the shares on the date of the
\n
agreement 19 February 2021 of \u20ac3,106,538 minus the subscription price of \u20ac33,152 (3,315,153 X \u20ac0.01). No warrants
\n
have been exercised as at 31 December 2022.
20. Borrowings
continued
\n
The Group had the following borrowing facilities in place in 2021:
\n
1.
A \u2018Prompt Pay\u2019 which was a short-term invoice financing facility with Allied Irish Banks PLC. An amount of \u20ac3,454k
\n
was drawn down in 2020. Terms attached to the facility was that Hostelworld.com Limited must ensure it maintains
\n
a cash balance of no less than \u20ac8.67m for the period ending 30 September 2020, \u20ac5.75m for the period ending
\n
31 December 2020 and \u20ac1.42m for the period ending 31 March 2021. On 26 January 2021 the amount owing on
\n
the facility was repaid in full and the facility is no longer available to the Group.
\n
2.
A three-year revolving credit facility for \u20ac7m with the Governor and Company of the Bank of Ireland to assist with
\n
the investing and development needs of the business. No amounts were ever drawn down on this facility. On
\n
10 February 2021 the Group signed a deed of release exiting the undrawn facility in place. Covenants attached to
\n
the facility as follows: Hostelworld.com Limited was to retain minimum cash balances of 20% of drawn facilities
\n
and the revolving credit facility was required to return to credit 20 days per annum. Hostelworld.com Limited were
\n
also required to maintain a minimum tangible net worth of not less than \u20ac90m.
\n
Borrowings are classified in the consolidated statement of financial position as:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current borrowings
30,869
28,209
\n
Current borrowings
244
\u2013
\n
Total
31,113
28,209
\n
Change in liabilities arising from financing activities:
\n
Lease liabilities
\n
(note 14)
Borrowings
\n
Deferred
\n
consideration
\n
(note 13)
Total debt
\n
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
At 1 January 2021
(4,295)
(1,164)
(1,266)
(6,725)
\n
Financing cash flows
1,262
(26,774)
345
(25,167)
\n
Interest paid (operating activities)
102
\u2013
\u2013
102
\n
Other non-cash movements
2,845
(271)
921
3,495
\n
Balance at 31 December 2021
(86)
(28,209)
\u2013
(28,295)
\n
Financing cash flows
783
\u2013
\u2013
783
\n
Interest paid (operating activities)
31
1,339
\u2013
1,370
\n
Other non-cash movements
(1,275)
(4,243)
\u2013
(5,518)
\n
Balance at 31 December 2022
(547)
(31,113)
\u2013
(31,660)
\n
Other non-cash movements for lease liabilities in 2022 and 2021 relate to additions, disposals, a modification and a
\n
lease term remeasurement as included in note 14. Other non-cash movements for borrowings relate to finance costs
\n
incurred and capitalised on the term loan facility (2021: the issuance costs for warrants related to borrowings).
\n
Other non-cash movements for deferred consideration is nil in the current year (2021: relates to capital reduction
\nas detailed in note 13 and revaluation of deferred consideration).", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15505": { "value": "2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Current liabilities
\n
Trade payables
3,944
5,425
\n
Accruals and other payables
5,136
6,113
\n
Deferred revenue
3,201
1,036
\n
Payroll taxes
582
221
\n
Total
12,863
12,795", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15506": { "value": "2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Current liabilities
\n
Trade payables
3,944
5,425
\n
Accruals and other payables
5,136
6,113
\n
Deferred revenue
3,201
1,036
\n
Payroll taxes
582
221
\n
Total
12,863
12,795", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15558": { "value": "20. Borrowings
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Opening Balance
28,209
1,164
\n
Received on Drawdown
\u2013
28,800
\n
Repayments
\u2013
(1,164)
\n
Loan issuance costs \u2013 issue of warrants
\u2013
(3,073)
\n
Transaction costs relating to borrowings
\u2013
(862)
\n
Finance costs
4,243
3,344
\n
Finance interest paid
(1,339)
\u2013
\n
Total
31,113
28,209
\n
On 19 February 2021 the Group signed a \u20ac30m five-year term loan facility with certain investment funds and accounts
\n
of HPS Investment Partners LLC (or subsidiaries or affiliates thereof). The facility is single drawdown and bears
\n
interest at a margin of 9.0% per annum over EURIBOR (with a EURIBOR floor of 0.25% per annum). In the first year
\n
following drawdown, all interest was rolled up and capitalised. Between the first and third anniversaries of drawdown,
\n
Hostelworld elected to capitalise 4.0% per annum of the accruing interest with the balance of the interest during
\n
that period (and all interest accruing after the third anniversary of drawdown) being cash pay.
\n
The facility agreement includes the following financial covenants: (1) adjusted net leverage (Hostelworld has to ensure
\n
that total net debt is no more than 3.0 x adjusted EBITDA from 31 December 2023 to 30 September 2024, and no more
\n
than 2.5 x adjusted EBITDA from 31 December 2024 onwards); and (2
) minimum liquidity (Hostelworld has to ensure
\n
that at close of business on the last business day of each month until it is testing the adjusted net leverage ratios
\n
there is free cash in members of the Group which have guaranteed repayment of the facility of at least \u20ac6.0 million).
\n
The lenders have the right to require repayment of the facility if Hostelworld is subject to a change in control and
\n
Hostelworld has the option to repay the facility early. If the facility is repaid for any reason within the first four years
\n
of its term a prepayment fee is payable as follows: if repayment is made (1) in the first two years after drawdown then
\n
all interest from the date of repayment to the second anniversary of drawdown is due, plus a 2% fee of the amount
\n
repaid, (2) between the second and the third anniversary of drawdown the fee is 2% of the amount repaid and
\n
(3) between the third and fourth anniversary of drawdown the fee is 1% of the amount repaid.
\n
Hostelworld and its principal trading subsidiaries will guarantee repayment of the facility and amounts payable under
\n
it and provide the lenders with a customary security package over their assets. Cash dividends to shareholders are
\n
permitted provided total net debt is below 2.0 x adjusted EBITDA, no events of default are ongoing and the above
\n
stated minimum liquidity covenant will be complied with after taking into account the proposed dividends. The Group
\n
is required to fund any new acquisitions through new equity and/or through a maximum of 50% of retained excess
\n
cashflow. Any acquisition by the Group of the remaining shareholdings in Goki PTY Limited and Counter App Limited
\n
is required to be funded from cash on the balance sheet.
\n
An amount of \u20ac28.8m was received on 23 February 2021, net of original issue discount.
\n
Issue of warrants:
\n
In connection with the facility, Hostelworld has agreed to issue warrants over 3,315,153 ordinary shares of \u20ac0.01 each
\n
in the capital of Hostelworld (equivalent to 2.85% of Hostelworld\u2019s current issued share capital at the time of issue
\n
of the warrants) to the lender. The warrants may be exercised at any time during the term of the loan and for a
\n
twelve-month period following its scheduled termination at an exercise price of \u20ac0.01 per ordinary share. Shares
\n
issued will be the same class and carry the same rights as existing shares. An amount of \u20ac3,073k was recorded for
\n
the initial recognition of the warrants calculated on the basis of the market price of the shares on the date of the
\n
agreement 19 February 2021 of \u20ac3,106,538 minus the subscription price of \u20ac33,152 (3,315,153 X \u20ac0.01). No warrants
\n
have been exercised as at 31 December 2022.
20. Borrowings
continued
\n
The Group had the following borrowing facilities in place in 2021:
\n
1.
A \u2018Prompt Pay\u2019 which was a short-term invoice financing facility with Allied Irish Banks PLC. An amount of \u20ac3,454k
\n
was drawn down in 2020. Terms attached to the facility was that Hostelworld.com Limited must ensure it maintains
\n
a cash balance of no less than \u20ac8.67m for the period ending 30 September 2020, \u20ac5.75m for the period ending
\n
31 December 2020 and \u20ac1.42m for the period ending 31 March 2021. On 26 January 2021 the amount owing on
\n
the facility was repaid in full and the facility is no longer available to the Group.
\n
2.
A three-year revolving credit facility for \u20ac7m with the Governor and Company of the Bank of Ireland to assist with
\n
the investing and development needs of the business. No amounts were ever drawn down on this facility. On
\n
10 February 2021 the Group signed a deed of release exiting the undrawn facility in place. Covenants attached to
\n
the facility as follows: Hostelworld.com Limited was to retain minimum cash balances of 20% of drawn facilities
\n
and the revolving credit facility was required to return to credit 20 days per annum. Hostelworld.com Limited were
\n
also required to maintain a minimum tangible net worth of not less than \u20ac90m.
\n
Borrowings are classified in the consolidated statement of financial position as:
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current borrowings
30,869
28,209
\n
Current borrowings
244
\u2013
\n
Total
31,113
28,209
\n
Change in liabilities arising from financing activities:
\n
Lease liabilities
\n
(note 14)
Borrowings
\n
Deferred
\n
consideration
\n
(note 13)
Total debt
\n
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
At 1 January 2021
(4,295)
(1,164)
(1,266)
(6,725)
\n
Financing cash flows
1,262
(26,774)
345
(25,167)
\n
Interest paid (operating activities)
102
\u2013
\u2013
102
\n
Other non-cash movements
2,845
(271)
921
3,495
\n
Balance at 31 December 2021
(86)
(28,209)
\u2013
(28,295)
\n
Financing cash flows
783
\u2013
\u2013
783
\n
Interest paid (operating activities)
31
1,339
\u2013
1,370
\n
Other non-cash movements
(1,275)
(4,243)
\u2013
(5,518)
\n
Balance at 31 December 2022
(547)
(31,113)
\u2013
(31,660)
\n
Other non-cash movements for lease liabilities in 2022 and 2021 relate to additions, disposals, a modification and a
\n
lease term remeasurement as included in note 14. Other non-cash movements for borrowings relate to finance costs
\n
incurred and capitalised on the term loan facility (2021: the issuance costs for warrants related to borrowings).
\n
Other non-cash movements for deferred consideration is nil in the current year (2021: relates to capital reduction
\nas detailed in note 13 and revaluation of deferred consideration).", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15740": { "value": "21. Contingencies
In the normal course of business, the Group may be subject to indirect taxes on its services in certain foreign
\n
jurisdictions. The Directors perform ongoing reviews of potential indirect taxes in these jurisdictions. Although the
\n
outcome of these reviews and any potential liability is uncertain, no provision has been made in relation to these
\ntaxes as the Directors believe that it is not probable that a material liability will arise.", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f15748": { "value": "22. Share based payments
Overall, the Group recognised an expense of \u20ac2,396k (2021: \u20ac2,162k) relating to equity settled share-based payment
\n
transactions in the consolidated income statement during the year. \u20ac678k (2021: \u20ac719k) relates to Long Term
\n
Incentive Plan (LTIP) scheme, \u20ac1,697k (2021: \u20ac1,392k
) is in relation to the Group\u2019s Restricted Share awards (RSU
)
\n
scheme, and \u20ac21k (2021: \u20ac51k) in relation to the Save As You Earn (SAYE
) scheme. All schemes are accounted for
\n
as equity settled in the financial statements.
\n
Long Term Incentive Plan (LTIP) scheme
\n
The Group operate a Long-Term Incentive Plan for executive Directors and selected management. There were no
\n
LTIP schemes created in 2022.
\n
In 2021, there was one invitation made to executive directors and selected management to participate in the Group\u2019s
\n
long-term incentive plan (LTIP). 2,336,885 nil cost options were granted, and these options will vest on 26 April 2024
\n
subject to meeting performance conditions based on the Company's adjusted EBITDA over a three-year period,
\n
Counter App revenue generated based on a target in 2023 and customer acquisition value targets to be met in 2023.
\n
No amendments were made to the performance conditions in 2021, but the target for each performance condition was
\n
amended. By late 2021, it was clear that the business environment had changed materially since the start of the year,
\n
when the targets for the 2021 award had originally been set. In particular the emergence of the Omicron COVID-19
\n
variant at the end of 2021 significantly increased the level of uncertainty around the pace of the post-pandemic
\n
recovery. It also proved very difficult to predict likely customer behaviour in such an environment. Based on the revised
\n
company projections, the targets were amended to align to what was originally set as being achieved in 2021. As
\n
such we have deemed no additional benefit was given to employees and therefore we have not adjusted the fair
\n
value of the shares following the amendment. Further detail is set out within the Remuneration Committee report
\n
on pages 121 and 122.
\n
For the 2020 scheme vesting conditions are dependent on the Adjusted Earnings per Share (EPS) performance
\n
and Total Shareholder Return (TSR) of the Group over a three-year period (the performance period
). Up to 25% of
\n
the shares/options subject to an award will vest according to the Group\u2019s adjusted EPS growth compared with
\n
target during the performance period. Up to 75% of the shares/options subject to an invitation will vest according
\n
to the Group\u2019s TSR performance during the performance period measured against the TSR performance indicators
\n
approved by the Remuneration Committee. There have been no amendments made to the 2020 scheme. Based
\n
on a review of the LTIP 2020 performance conditions as at 31 December 2022 the EPS condition accounting for
\n
25% will not vest. The TSR condition will be assessed based on the performance period in 2023.
\n
The 2019 LTIP scheme did not vest.
22. Share based payments
continued
\n
Details of the share options outstanding during the year are as follows:
\n
2022
2021
\n
No. of
\n
share options
\n
No. of
\n
share options
\n
Outstanding at beginning of year
4,741,475
3,919,734
\n
Granted during the year
\u2013
2,336,885
\n
Forfeited or expired during the year
(494,129)
(1,515,144)
\n
Exercised during the year
\u2013
\u2013
\n
Vested during the year
\u2013
\u2013
\n
Outstanding at the end of the year
4,247,346
4,741,475
\n
Exercisable at the end of the year
2,421,646
\u2013
\n
For all schemes an award will lapse if a participant ceases to be an employee or an officer within the Group before
\n
the vesting date and is not subject to good leaver provisions.
\n
Included in the number of options forfeited in 2021, are 745,199 of the 2019 awards which did not meet the vesting
\n
conditions based on performance conditions from 1 January 2019 to 31 December 2021.
\n
If the conditions are met, the remaining awards will vest on the later of the 3 anniversary of the grant and the
\n
determination of the performance condition and will then remain exercisable until the 7 anniversary of the date
\n
of grant, provided the individual remains an employee or officer of the Group or is subject to good leaver provisions.
\n
The measurement period for the 2020 and 2021 awards for performance conditions is over 3 years from 2 May
\n
2020 to 1 May 2023 and from 27 April 2021 to 26 April 2024 respectively.
\n
Share options under the LTIP scheme have an exercise price of \u00a3nil. The fair value, at the grant date, of the TSR-based
\n
conditional awards was measured using a Monte Carlo simulation model.
\n
Fair value of options granted during the year:
\n
At the grant date, the fair value per conditional award and the assumptions used in the calculations are as follows:
\n
April 2021
May 2020
\n
Year of potential vesting
2024
2023
\n
Number of share options granted
2,336,885
3,793,200
\n
Share price at grant date
\u00a31.00
\u00a30.74
\n
Exercise price per share option
\u00a3nil
\u00a3nil
\n
Expected volatility of Company share price
n/a
51.86%
\n
Expected life
3 years
3 years
\n
Expected dividend yield
nil
6.06%
\n
Risk free interest rate
n/a
0.08%
\n
Weighted average fair value at grant date
\u00a31.00
\u00a30.49
\n
Remaining weighted average life of options (years)
1.32
0.33
\n
Expected volatility was determined based on the market performance of the Company over a period of 36 months
\n
prior to the date of grant for all the 2020 and 2019 awards.
Market based vesting conditions, such as the TSR condition, have been taken into account in establishing the fair
\n
value of equity instruments granted. Non-market-based performance conditions, such as the EPS conditions, were
\n
not taken into account in establishing the fair value of equity instruments granted, however the number of equity
\n
instruments included in the measurement of the transaction is adjusted so that the amount recognised is based
\n
on the number of equity instruments that are expected to vest.
\n
Restricted Share Awards (RSU) Scheme
\n
In 2022 a new RSU award was granted. The 2022 share awards granted will vest after a three-year period. Vesting
\n
will be dependent upon the participant being employed by the Group as of the vesting date and satisfactory
\n
personal performance.
\n
During 2021 the Company granted a RSU to selected employees in lieu of a cash bonus, including the executive
\n
directors and members of the management team. In total 2,642,212 share awards were granted. 50% of the award
\n
vested on 28 February 2022 and 1,184,211 shares were issued. The remaining 50% will vest on 28 February 2023.
\n
Vesting will be dependent upon the participant being employed by the Group as of the vesting date and
\n
satisfactory personal performance.
\n
2022
2021
\n
Outstanding at the beginning of the period
2,329,810
\u2013
\n
Granted during the year
3,339,084
2,642,212
\n
Exercised during the year
(1,184,211)
\u2013
\n
Forfeited
(475,315)
(312,402)
\n
Outstanding at the end of the period
4,009,368
2,329,810
\n
Exercisable at the end of the period
1,005,746
1,274,081
\n
Save As You Earn (SAYE) scheme
\n
During the years ended 31 December 2022 and 2021, the Group did not approve the granting of any new SAYE scheme
\n
following the withdrawal of Ulster Bank from the Irish market who were the only bank with an Irish banking licence
\n
that accepted new accounts for Save As You Earn schemes.
\n
Prior to 2021, a scheme was approved in 2019 and 2020. At 31 December 2022 members of the 2019 SAYE scheme
\n
still had an option to exercise their shares, if they wished. The schemes last three years and employees may choose
\n
to purchase shares at the end of the three-year period at the fixed discounted price set at the start. The share price
\n
for the scheme has been set at a 20% discount for Irish and UK based employees in line with amounts permitted
\n
under tax legislation in both jurisdictions.
\n
Number of SAYE
\n
share options granted
\n
2022
2021
\n
Outstanding at beginning of year
277,624
447,094
\n
Granted during the year
\u2013
11,541
\n
Vested during the year
(6,070)
\u2013
\n
Forfeited during the year
(47,584)
(181,011)
\n
Outstanding at end of year
223,970
277,624
\n
Exercisable at the end of year
223,970
62,847
\n
For all schemes an award will lapse if a participant ceases to be an employee or an officer within the Group before
\n
the vesting date.
22. Share based payments
continued
\n
At the grant date, the fair value for each SAYE award and the assumptions used in the calculations are as follows:
\n
Scheme
UK office
Irish office
\n
Grant date
August 2020
August 2020
\n
Year of potential vesting
2023
2023
\n
Share price at grant date
\u00a30.63
\u20ac0.70
\n
Exercise price per share option
\u00a30.50
\u20ac0.56
\n
Expected volatility of company share price
54.2%
54.2%
\n
Expected life
3 years
3 years
\n
Expected dividend yield
6.13%
6.13%
\n
Risk free interest rate
\u20130.03%
\u20130.03%
\n
Weighted average fair value at grant date
\u00a30.20
\u20ac0.22
\n
Valuation model
Black Scholes
Black Scholes
\n
Expected volatility was determined in line with market performance of the Company for the 2020 scheme.
\n
Cash settled share-based payments
\n
During 2018, the Group issued to certain individuals share appreciation rights (SARs), in the form of Phantom Shares
\n
that require the Group to pay the intrinsic value of the SAR at the date of exercise. The Group has recorded liabilities
\n
of \u20ac62k and a corresponding expense of \u20ac62k in relation to these SARs as at 31 December 2022 (2021: \u20ac26k). Where
\nrelevant the fair value of these SARs was determined by using the same inputs as used for the RSU share awards.", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f16005": { "value": "23. Related party transactions
Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated
\n
on consolidation and are not disclosed in this note.
\n
Directors\u2019 remuneration
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Salaries, fees, bonuses and benefits in kind
1,130
1,076
\n
Amounts receivable under long-term incentive schemes
277
257
\n
Termination benefits
\u2013
\u2013
\n
Other remuneration
623
402
\n
Pension contributions
65
61
\n
Total
2,095
1,796
\n
Retirement benefit charges arise from pension payments relating to 2 Executive Directors (2021: 2). Other remuneration
\n
of \u20ac623k relates to share-based payment expense in respect of the Restricted Share awards (RSU) scheme operated
\n
in 2021 (2021: \u20ac402k).
Key management personnel
\n
The Group\u2019s key management comprise the Board of Directors and senior management having authority and
\n
responsibility for planning, directing and controlling the activities of the Group.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Short term benefits
2,568
2,608
\n
Share based payments charge
1,877
1,450
\n
Termination benefits
200
593
\n
Post-employment benefits
134
152
\n
Total
4,779
4,803", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f16047": { "value": "Key management personnel
The Group\u2019s key management comprise the Board of Directors and senior management having authority and
\n
responsibility for planning, directing and controlling the activities of the Group.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Short term benefits
2,568
2,608
\n
Share based payments charge
1,877
1,450
\n
Termination benefits
200
593
\n
Post-employment benefits
134
152
\n
Total
4,779
4,803", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f16073": { "value": "24. Subsidiaries and associates
Subsidiaries
\n
The following is a list of the Company\u2019s current investments in subsidiaries, including the name, country of incorporation,
\n
and proportion of ownership interest:
\n
Company
Holding
Nature of Business
Registered Office
\n
Hostelworld.com Limited
\n
196 Ordinary shares @ \u20ac1
\n
100%
\n
*
\n
Technology trading company
Charlemont Exchange
\n
Charlemont St
\n
Dublin
\n
D02 VN88
\n
Ireland
\n
Hostelworld Services Portugal LDA
\n
500 Ordinary shares @ \u20ac1
\n
100%
Marketing and research
\n
and development
\n
services company
\n
Rua Ant\u00f2nio Nicolau D\u2019Almeid
\n
45, 5 Floor
\n
4100-320 Oporto
\n
Portugal
\n
Hostelworld Business Consulting
\n
(Shanghai) Co., Limited
\n
**
\n
100%
Business information
\n
consulting and
\n
marketing planning
\n
Suite 304
\n
Block 2
\n
No.425 Yanping Road
\n
Jing\u2019an District
\n
Shanghai China 200042
\n
\u5ef6\u5e73\u8def
425
\u53f7
2
\u5e62
304
\u5ba4
\n
\u4e0a\u6d77
,
\u4e2d\u56fd
\n
Hostelworld Services Limited
\n
104,123 Ordinary shares @ \u00a30.001
\n
100%
\n
*
\n
Marketing services and
\n
technology trading company
\n
Floor 5
\n
38 Chancery Lane
\n
The Cursitor
\n
London
\n
WC2A 1EN
\n
United Kingdom
\n
*
\n
Held directly by the Company
\n
**
\n
3 Million RMB contributed by Hostelworld.com Limited for 100% ownership of subsidiary
\n
On 12 May 2022, a resolution was passed to liquidate Counter App Limited, a subsidiary of Hostelworld.com Limited.
\n
The trade was transferred to another Group entity, Hostelworld.com Limited.
\nAll subsidiaries have the same reporting date as the Company being 31 December.", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f16156": { "value": "Associates
The following details the Company\u2019s current investment in associates, including the name, country of incorporation,
\n
and proportion of ownership interest:
\n
Company
Holding
Nature of Business
Registered Office
\n
Goki Pty Limited
49%/31.5%
\n
*
\n
Technology company
477 Kent St,
\n
Sydney
\n
NSW 2000,
\n
Australia
\n
*
\n
49% up until 7 July 2021
\n
On 7 July 2021 the directors of Goki PTY Limited approved a reduction in the investment held by Hostelworld.com
\nLimited in the company. The shareholding was reduced from 49% to 31.5% through means of a capital reduction.", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f16178": { "value": "25. Financial risk management
Financial risk factors
\n
The Directors manage the Group\u2019s capital, consisting of both debt and equity, to ensure that the Group will be able
\n
to continue as a going concern while also maximising the return to stakeholders. As part of this process, the Directors
\n
review financial risks such as liquidity risk, credit risk, foreign exchange risk and interest rate risk regularly.
\n
Liquidity risk
\n
Cash flow forecasting is monitored by rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient
\n
cash to meet operational needs while not breaching any covenants that the Group adheres to. Such forecasting takes
\n
into consideration the Group\u2019s debt financing plans. There have been no new financing arrangements entered into
\n
in the current year. The Group will look to refinance the term-loan facility in 2023, to reduce interest rate costs.
\n
There have been no significant developments in this respect after the balance sheet date.
\n
The Group\u2019s policy is to ensure that it has sufficient long-term funding in place to meet its payment obligations and
\n
complies with covenants. The risk is managed centrally by the Group and reviewed by the Board on a regular basis.
\n
The table below analyses the Group\u2019s financial liabilities into relevant maturity groupings based on the remaining
\n
period at the reporting date to the contractual maturity date. The Group had no derivative financial liabilities in the
\n
current or prior year. The amounts disclosed in the table are the contractual undiscounted cash flows.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Up to 1 year
\n
Borrowings
244
\u2013
\n
Trade and other payables
12,131
11,274
\n
Total up to 1 year
12,375
11,274
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Between 2 and 5 years
\n
Borrowings
34,066
32,453
\n
Total between 2 and 5 years
34,066
32,453
\n
Total
46,441
43,727
Interest rate risk
\n
The principal aim of managing interest rate risk is to limit the adverse impact on cash flows of movements in interest
\n
rates. Cash requirements are managed centrally by the Group. The Group only has one debt facility in place with
\n
HPS where the Group is charged 9.0% per annum over Euribor (with a Euribor floor of 0.25% per annum).
\n
The Group\u2019s current models include the most up to date forecasted EURIBOR rates from two leading Irish banks.
\n
As at 31 December, we have performed a sensitivity analysis taking into account these forecasted rates. We have
\n
considered a further 2% increase in Euribor rates which would result in a \u20ac2.2m impact on the Income Statement,
\n
over the duration of the tenure from the balance sheet date, with respect to the interest charge on HPS debt facility.
\n
Credit risk and foreign exchange risk
\n
Credit risk refers to the risk of financial loss to the Group if a counterparty defaults on its contractual obligations on
\n
financial assets held on the Statement of Financial Position.
\n
The Directors monitor the credit risk associated with trade receivables and cash and cash equivalent balances on an
\n
on-going basis. The Group\u2019s trade receivable balances primarily relate to VAT receivable balances from Irish hostels
\n
and amounts due from the Group\u2019s payment processing agents. Amounts due from the Group\u2019s payment processing
\n
agent are due for maturity within 5 days. Accordingly, the associated credit risk is determined to be low. These trade
\n
receivable balances, which consist of euro, US dollar and Sterling amounts, are settled within a relatively short period
\n
of time, which reduces any potential foreign exchange exposure risk.
\n
The aged analysis of trade receivables for the year ended 31 December 2022 and 31 December 2021 is summarised
\n
in the table below.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Receivable within 1 month of the balance sheet date
552
178
\n
Receivable between 1 and 3 months of the balance sheet date
18
35
\n
Receivable greater than 3 months of the balance sheet date
41
7
\n
Total trade receivables
611
220
\n
The figures disclosed above are stated net of allowances for impairment
\n
At 31 December 2022 and 2021, all material cash balances are held with banks with a minimum credit rating of BBB-,
\n
as assigned by international credit rating agencies. As a result, the credit risk on cash balances is limited. The carrying
\n
value of trade receivables, trade payables and cash and cash equivalents is a reasonable approximation of their
\n
fair value. The Group does not enter into or trade financial instruments, including derivative financial instruments,
\n
for speculative purposes.
\n
The Board considers capital to comprise of long-term debt as disclosed in note 20 and equity as disclosed in note 17.
\n
The Directors\u2019 objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern
\n
in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital
\n
structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Directors may adjust
\n
the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets. In 2022
\n
and 2021 cash dividends were suspended while the Group continues to recover following the impact of COVID-19.
\n
The Group will ensure it retains sufficient reserves to manage its day to day cash requirements, including capital
\nexpenditure requirements, whilst ensuring appropriate dividends are distributed to shareholders.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f16179": { "value": "25. Financial risk management
Financial risk factors
\n
The Directors manage the Group\u2019s capital, consisting of both debt and equity, to ensure that the Group will be able
\n
to continue as a going concern while also maximising the return to stakeholders. As part of this process, the Directors
\n
review financial risks such as liquidity risk, credit risk, foreign exchange risk and interest rate risk regularly.
\n
Liquidity risk
\n
Cash flow forecasting is monitored by rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient
\n
cash to meet operational needs while not breaching any covenants that the Group adheres to. Such forecasting takes
\n
into consideration the Group\u2019s debt financing plans. There have been no new financing arrangements entered into
\n
in the current year. The Group will look to refinance the term-loan facility in 2023, to reduce interest rate costs.
\n
There have been no significant developments in this respect after the balance sheet date.
\n
The Group\u2019s policy is to ensure that it has sufficient long-term funding in place to meet its payment obligations and
\n
complies with covenants. The risk is managed centrally by the Group and reviewed by the Board on a regular basis.
\n
The table below analyses the Group\u2019s financial liabilities into relevant maturity groupings based on the remaining
\n
period at the reporting date to the contractual maturity date. The Group had no derivative financial liabilities in the
\n
current or prior year. The amounts disclosed in the table are the contractual undiscounted cash flows.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Up to 1 year
\n
Borrowings
244
\u2013
\n
Trade and other payables
12,131
11,274
\n
Total up to 1 year
12,375
11,274
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Between 2 and 5 years
\n
Borrowings
34,066
32,453
\n
Total between 2 and 5 years
34,066
32,453
\n
Total
46,441
43,727
Interest rate risk
\n
The principal aim of managing interest rate risk is to limit the adverse impact on cash flows of movements in interest
\n
rates. Cash requirements are managed centrally by the Group. The Group only has one debt facility in place with
\n
HPS where the Group is charged 9.0% per annum over Euribor (with a Euribor floor of 0.25% per annum).
\n
The Group\u2019s current models include the most up to date forecasted EURIBOR rates from two leading Irish banks.
\n
As at 31 December, we have performed a sensitivity analysis taking into account these forecasted rates. We have
\n
considered a further 2% increase in Euribor rates which would result in a \u20ac2.2m impact on the Income Statement,
\n
over the duration of the tenure from the balance sheet date, with respect to the interest charge on HPS debt facility.
\n
Credit risk and foreign exchange risk
\n
Credit risk refers to the risk of financial loss to the Group if a counterparty defaults on its contractual obligations on
\n
financial assets held on the Statement of Financial Position.
\n
The Directors monitor the credit risk associated with trade receivables and cash and cash equivalent balances on an
\n
on-going basis. The Group\u2019s trade receivable balances primarily relate to VAT receivable balances from Irish hostels
\n
and amounts due from the Group\u2019s payment processing agents. Amounts due from the Group\u2019s payment processing
\n
agent are due for maturity within 5 days. Accordingly, the associated credit risk is determined to be low. These trade
\n
receivable balances, which consist of euro, US dollar and Sterling amounts, are settled within a relatively short period
\n
of time, which reduces any potential foreign exchange exposure risk.
\n
The aged analysis of trade receivables for the year ended 31 December 2022 and 31 December 2021 is summarised
\n
in the table below.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Receivable within 1 month of the balance sheet date
552
178
\n
Receivable between 1 and 3 months of the balance sheet date
18
35
\n
Receivable greater than 3 months of the balance sheet date
41
7
\n
Total trade receivables
611
220
\n
The figures disclosed above are stated net of allowances for impairment
\n
At 31 December 2022 and 2021, all material cash balances are held with banks with a minimum credit rating of BBB-,
\n
as assigned by international credit rating agencies. As a result, the credit risk on cash balances is limited. The carrying
\n
value of trade receivables, trade payables and cash and cash equivalents is a reasonable approximation of their
\n
fair value. The Group does not enter into or trade financial instruments, including derivative financial instruments,
\n
for speculative purposes.
\n
The Board considers capital to comprise of long-term debt as disclosed in note 20 and equity as disclosed in note 17.
\n
The Directors\u2019 objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern
\n
in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital
\n
structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Directors may adjust
\n
the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets. In 2022
\n
and 2021 cash dividends were suspended while the Group continues to recover following the impact of COVID-19.
\n
The Group will ensure it retains sufficient reserves to manage its day to day cash requirements, including capital
\nexpenditure requirements, whilst ensuring appropriate dividends are distributed to shareholders.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f16187": { "value": "Liquidity risk
Cash flow forecasting is monitored by rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient
\n
cash to meet operational needs while not breaching any covenants that the Group adheres to. Such forecasting takes
\n
into consideration the Group\u2019s debt financing plans. There have been no new financing arrangements entered into
\n
in the current year. The Group will look to refinance the term-loan facility in 2023, to reduce interest rate costs.
\n
There have been no significant developments in this respect after the balance sheet date.
\n
The Group\u2019s policy is to ensure that it has sufficient long-term funding in place to meet its payment obligations and
\n
complies with covenants. The risk is managed centrally by the Group and reviewed by the Board on a regular basis.
\n
The table below analyses the Group\u2019s financial liabilities into relevant maturity groupings based on the remaining
\n
period at the reporting date to the contractual maturity date. The Group had no derivative financial liabilities in the
\n
current or prior year. The amounts disclosed in the table are the contractual undiscounted cash flows.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Up to 1 year
\n
Borrowings
244
\u2013
\n
Trade and other payables
12,131
11,274
\n
Total up to 1 year
12,375
11,274
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Between 2 and 5 years
\n
Borrowings
34,066
32,453
\n
Total between 2 and 5 years
34,066
32,453
\n
Total
46,441
43,727", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f16250": { "value": "Credit risk and foreign exchange risk
Credit risk refers to the risk of financial loss to the Group if a counterparty defaults on its contractual obligations on
\n
financial assets held on the Statement of Financial Position.
\n
The Directors monitor the credit risk associated with trade receivables and cash and cash equivalent balances on an
\n
on-going basis. The Group\u2019s trade receivable balances primarily relate to VAT receivable balances from Irish hostels
\n
and amounts due from the Group\u2019s payment processing agents. Amounts due from the Group\u2019s payment processing
\n
agent are due for maturity within 5 days. Accordingly, the associated credit risk is determined to be low. These trade
\n
receivable balances, which consist of euro, US dollar and Sterling amounts, are settled within a relatively short period
\n
of time, which reduces any potential foreign exchange exposure risk.
\n
The aged analysis of trade receivables for the year ended 31 December 2022 and 31 December 2021 is summarised
\n
in the table below.
\n
2022
2021
\n
\u20ac\u2019000
\u20ac\u2019000
\n
Receivable within 1 month of the balance sheet date
552
178
\n
Receivable between 1 and 3 months of the balance sheet date
18
35
\n
Receivable greater than 3 months of the balance sheet date
41
7
\n
Total trade receivables
611
220
\n
The figures disclosed above are stated net of allowances for impairment
\n
At 31 December 2022 and 2021, all material cash balances are held with banks with a minimum credit rating of BBB-,
\n
as assigned by international credit rating agencies. As a result, the credit risk on cash balances is limited. The carrying
\n
value of trade receivables, trade payables and cash and cash equivalents is a reasonable approximation of their
\n
fair value. The Group does not enter into or trade financial instruments, including derivative financial instruments,
\n
for speculative purposes.
\n
The Board considers capital to comprise of long-term debt as disclosed in note 20 and equity as disclosed in note 17.
\n
The Directors\u2019 objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern
\n
in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital
\n
structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Directors may adjust
\n
the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets. In 2022
\n
and 2021 cash dividends were suspended while the Group continues to recover following the impact of COVID-19.
\n
The Group will ensure it retains sufficient reserves to manage its day to day cash requirements, including capital
expenditure requirements, whilst ensuring appropriate dividends are distributed to shareholders.", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f16305": { "value": "26. Dividends
There are no cash dividends in 2022 or 2021. Future cash dividend payments will be subject to the Group generating
\n
profit after tax, the Group\u2019s cash position, any restrictions in the Group\u2019s banking facilities and subject to compliance
\n
with Companies Act 2006 requirements regarding ensuring sufficiency of distributable reserves at the time of paying
\nthe dividend.", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f16316": { "value": "28. Events after the Balance Sheet date There are no significant events after the balance sheet date.", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f16330": { "value": "Company Statement of Financial Position
as at 31 December 2022
\n
2022
2021
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\n
Non-current assets
\n
Investments
32
49,030
48,523
\n
Trade and other receivables
33
113,449
112,202
\n
162,479
160,725
\n
Current assets
\n
Trade and other receivables
33
280
292
\n
Cash and cash equivalents
1,120
1,154
\n
1,400
1,446
\n
Total assets
163,879
162,171
\n
Equity
\n
Share capital
17
1,175
1,163
\n
Share premium account
17
14,328
14,328
\n
Other reserves
6,429
6,449
\n
Retained earnings
141,082
139,166
\n
Total equity attributable to equity holders of the parent
163,014
161,106
\n
Current liabilities
\n
Trade and other payables
34
748
1,065
\n
Corporation tax liability
90
\u2013
\n
Payroll taxes
27
\u2013
\n
Total liabilities
865
1,065
\n
Total equity and liabilities
163,879
162,171
\n
The Company reported a loss for the financial year ended 31 December 2022 of \u20ac515k (2021: \u20ac14,092k loss).
\n
The financial statements of Hostelworld Group plc were approved by the Board of Directors and authorised for issue
\n
on 21 March 2023 and signed on its behalf by:
\n
Gary Morrison
Caroline Sherry
\n
Chief Executive Officer
Chief Financial Officer
\n
Hostelworld Group plc registration number 9818705 (England and Wales)
\n
\n
Company Statement of Changes In Equity
\n
for the year ended 31 December 2022
\n
Share
\n
capital
\n
Share premium
\n
account
\n
Retained
\n
earnings
\n
Other
\n
reserves
Total
\n
Notes
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\n
As at 1 January 2021
1,163
14,328
153,258
1,227
169,976
\n
Total comprehensive income
\n
for the year
\u2013
\u2013
(14,092)
\u2013
(14,092)
\n
Issue of warrants
20
\u2013
\u2013
\u2013
3,073
3,073
\n
Credit to equity for equity settled
\n
share-based payments
\u2013
\u2013
\u2013
2,149
2,149
\n
As at 31 December 2021
1,163
14,328
139,166
6,449
161,106
\n
Total comprehensive income
\n
for the year
\u2013
\u2013
(515)
\u2013
(515)
\n
Issue of shares
12
\u2013
\u2013
\u2013
12
\n
Transfer of exercised and
\n
expired share option awards
\u2013
\u2013
2,431
(2,431)
\u2013
\n
Credit to equity for equity settled
\n
share-based payments
\u2013
\u2013
\u2013
2,411
2,411
\n
As at 31 December 2022
1,175
14,328
141,082
6,429
163,014", "dimensions": { "concept": "ifrs-full:DisclosureOfConsolidatedAndSeparateFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800OC94PF2D675H41", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } } } }