Abta made a loss of £228,000 on its trade association activities in the 12 months to last June, but still recorded a surplus income of more than £2 million thanks to its insurance subsidiary, according to its latest accounts.
The surplus, less a £394,000 loss on the Abta pension scheme, increased the association’s net assets by £1.7 million on 2022 to almost £29 million.
Abta reported a restated group surplus of £296,000 for 2022, up from the £211,000 previously reported, following a loss of £15.3 million in 2021 due to the pandemic.
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The association is committed to breaking even on its trade activities by the end of June. However, the accounts reveal a continued decline in Abta membership numbers and, for the first time in several years, a fall in managed branch numbers.
The accounts note 57 members left in the 12 months to last June, with 22 new members joining, taking the year-end membership to 831 – down from 866 in 2022. The number of managed branches fell from 450 to 416.
Abta notes in the accounts: “This reduction reflects the ongoing impact on post-pandemic recovery, with several members ceasing to trade or failing financially, and continuing consolidation within the industry.”
Yet the accounts also note “just six failures in 2021-22” following 27 in 2020-21 and report “only two failures” during the 12 months to last June.
Membership numbers have fallen consistently over recent years – from 1,142 in 2018 to 1,106 in 2019, 1,055 in 2020 and 928 in 2021.
Head office members (831) and managed branches (416) combined still give a total of 1,247, although this is down from 1,316 a year earlier.
The accounts note a core risk that “Abta services are not seen as value for money by members” but report: “Abta’s review of services confirmed demand for the current service offering.”
They also note the association’s goal of a break-even operating result by this June “will be achieved through growing non-subscription revenues and maintaining strict cost control”.
Member subscriptions raised £6.3 million in the year, £204,000 up on 2022, while the annual Travel Convention and other events brought in £896,000, up from £329,000. Abta’s annual wage bill rose by £291,000 to £5.3 million despite a reduction in headcount from 97 to 94.