Company registration number 14002276 (England and Wales)
WILLIS AVIATION SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
WILLIS AVIATION SERVICES LIMITED
COMPANY INFORMATION
Directors
Mr D M Poulakidas
(Appointed 25 March 2022)
Mr B R Hole
(Appointed 25 March 2022)
Mr G A Failler
(Appointed 30 June 2022)
Mr A C Willis
(Appointed 25 March 2022)
Secretary
Norose Company Secretarial
Company number
14002276
Registered office
Hangar 2 Teesside International Airport
Darlington
United Kingdom
DL2 1NJ
Auditor
Azets Audit Services
Charter Court
Phoenix Way Enterprise Park
Swansea
United Kingdom
SA7 9FS
WILLIS AVIATION SERVICES LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of financial position
8
Notes to the financial statements
9 - 15
WILLIS AVIATION SERVICES LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 1 -
The directors present their annual report and financial statements for the period ended 31 December 2022.
Principal activities
The principal activity of the company is the operation of a jet centre providing ground handling solutions at Teeside International Airport (UK).
Results
Key highlights and background
Willis Aviation Services Limited was incorporated in April 2022. The company is a wholly owned subsidiary of Willis Lease Finance Corporation, a company registered in Delaware that is listed with the USA Securities and Exchange Commission.
The company was incorporated as a result of the expansion of the Willis Group’s operation at Teesside International Airport, UK. In May 2022 the Company took over the running of the Jet Centre (FBO) and in July commenced Ground Handling operations at the airport.
In 2022 the principal activity of the company is the provision of airport services at Teesside International Airport.
Review of business and future developments
2022 was the first year of trading for the company. The company delivered $1.7m of revenue and a small loss.
WLFC has continued to invest significantly in broadening capabilities and expanding its business in the UK. There has been significant ongoing investment in expanding the Group’s Aircraft Maintenance operations in Teesside. During 2022 the Maintenance Operations continued to be part of the Company’s sister company, Willis Asset Management Limited. In 2023, the Maintenance Activities at Teesside were novated to Willis Aviation Services Limited. All the Group’s Teesside-based activities are now delivered by the Company.
Significant capital investment is being made in buildings, equipment and new services which will allow the company to continue to expand and grow. As a result of this investment and anticipated short-term losses, the Company is dependent upon the support of its parent company. The directors are confident that the foundations are being laid for further growth and profitability in the future.
The Company employed 14 staff at the end of the year.
The statement of comprehensive income for the year to 31 December 2022 is set out on page 7.
Key Performance Indicators
The company’s key performance indicators (KPI’s) are summarised below:
2022
$'000
Revenue 1,694
Loss Before Tax (21)
Number of Employees at year end 14
Cash at Bank 439
WILLIS AVIATION SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 2 -
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr D M Poulakidas
(Appointed 25 March 2022)
Mr B R Hole
(Appointed 25 March 2022)
Mr G A Failler
(Appointed 30 June 2022)
Mr A C Willis
(Appointed 25 March 2022)
Auditor
Azets Audit Services were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr B R Hole
Director
31 January 2024
WILLIS AVIATION SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
WILLIS AVIATION SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF WILLIS AVIATION SERVICES LIMITED
- 4 -
Opinion
We have audited the financial statements of Willis Aviation Services Limited (the 'company') for the period ended 31 December 2022 which comprise the income statement, the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
WILLIS AVIATION SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF WILLIS AVIATION SERVICES LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
WILLIS AVIATION SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF WILLIS AVIATION SERVICES LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Paul Bowden (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
31 January 2024
Chartered Accountants
Statutory Auditor
Charter Court
Phoenix Way Enterprise Park
Swansea
United Kingdom
SA7 9FS
WILLIS AVIATION SERVICES LIMITED
INCOME STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 7 -
Period
ended
31 December
2022
$
Revenue
1,694,055
Cost of sales
(1,300,043)
Gross profit
394,012
Administrative expenses
(414,593)
Loss before taxation
(20,581)
Tax on loss
4,439
Loss for the financial period
(16,142)
The income statement has been prepared on the basis that all operations are continuing operations, and has been presented in US Dollars.
WILLIS AVIATION SERVICES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 8 -
2022
Notes
$
$
Non-current assets
Property, plant and equipment
4
1,383,398
Current assets
Inventories
33,968
Trade and other receivables
5
999,674
Cash and cash equivalents
438,723
1,472,365
Current liabilities
6
(953,228)
Net current assets
519,137
Total assets less current liabilities
1,902,535
Non-current liabilities
7
(1,899,908)
Provisions for liabilities
(18,768)
Net liabilities
(16,141)
Equity
Called up share capital
8
1
Retained earnings
(16,142)
Total equity
(16,141)
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 31 January 2024 and are signed on its behalf by:
Mr B R Hole
Director
Company Registration No. 14002276
WILLIS AVIATION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 9 -
1
Accounting policies
Company information
Willis Aviation Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hangar 2 Teesside International Airport, Darlington, United Kingdom, DL2 1NJ.
1.1
Reporting period
The financial statements have been prepared for a 9-month period from the date of incorporation to the 31 December 2022 and consequently, no comparative amounts are presented in these financial statements (including the related notes).
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in US Dollars which is the presentional currency of the company. The functional currency of the company is GBP. Monetary amounts in these financial statements are rounded to the nearest $.
The financial statements have been prepared under the historical cost convention, the principal accounting policies adopted are set out below.
1.3
Going concern
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.
The period ended 31 December 2022 was the company's first period of trade, and as at this date had net liabilities of $16,141, which is inclusive of $2,140,582 of balances owed to group companies. The company had net current assets at 31 December 2022 of $519,137.
The directors have analysed the cash flow requirements of the company based on the future forecasts of the company and a review of the facilities in place and identified that on-going support is required from the group of which it forms a part.
In the post year end period the group has continued to demonstrate their commitment to the company and has provided this support. On 27 December 2023 Willis Lease Finance Corporation (WLFC) completed a debt restructure by way of a capital contribution of $10m to Willis Aviation Services Limited which has strengthened the balance sheet and enabled it to settle all repayment debt owed to the wider group. The directors have obtained confirmation from Willis Lease Finance Corporation, that it is their intention to provide support to the company to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of the financial statements.
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
WILLIS AVIATION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 10 -
1.4
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
5 - 15 years
Plant and equipment
3 - 10 years
Computers
1- 5 years
Motor vehicles
5 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
WILLIS AVIATION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
WILLIS AVIATION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the 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. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
WILLIS AVIATION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2022
Number
Total
10
4
Property, plant and equipment
Leasehold improvements
Assets under construction
Plant and equipment
Computers
Motor vehicles
Total
$
$
$
$
$
$
Cost
At 25 March 2022
Additions
5,177
440,627
887,700
38,624
67,830
1,439,958
At 31 December 2022
5,177
440,627
887,700
38,624
67,830
1,439,958
Depreciation and impairment
At 25 March 2022
Depreciation charged in the period
439
46,069
6,631
3,421
56,560
At 31 December 2022
439
46,069
6,631
3,421
56,560
Carrying amount
At 31 December 2022
4,738
440,627
841,631
31,993
64,409
1,383,398
WILLIS AVIATION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 14 -
5
Trade and other receivables
2022
Amounts falling due within one year:
$
Trade receivables
464,841
Amounts owed by group undertakings
388,154
Other receivables
123,472
976,467
Deferred tax asset
23,207
999,674
6
Current liabilities
2022
$
Trade payables
657,489
Amounts owed to group undertakings
240,674
Other payables
55,065
953,228
7
Non-current liabilities
2022
$
Amounts owed to group undertakings
1,899,908
Amounts owed are unsecured and repayable on demand except that thirteen months notice in writing is required prior to repayment having to be made. No interest has been charged on the balance.
8
Called up share capital
2022
2022
Ordinary share capital
Number
$
Issued and fully paid
Ordinary of $1 each
1
1
WILLIS AVIATION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 15 -
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
$
58,746
10
Events after the reporting date
During 2023, operations of the business were restructured. Aircraft Maintenance Service activities were transferred from fellow UK subsidiary Willlis Asset Management Limited to Willis Aviation Services Limited, including all trade, assets and liabilities. In 2022 this revenue stream totalled $938,381 in Willis Asset Management Limited.
On 27 December 2023, Willis Lease Finance Corporation, the US parent undertaking, made a capital contribution totalling $10,000,000 to the company. The capital contribution received has been utilised to repay in full amounts owed to group undertakings at that date, inclusive of amounts that were outstanding as at 31 December 2022.
11
Parent company
The parent company and ultimate controlling party is considered to be Willis Lease Finance Corporation, 4700 Lyons Technology Parkway, Coconut Creek, Florida 33073, USA who own 100% of the shares in the company.
2022-12-312022-03-25falseCCH SoftwareCCH Accounts Production 2023.300Mr D M PoulakidasMr B R HoleMr G A FaillerMr A C WillisNorose Company Secretarialfalse140022762022-03-252022-12-3114002276bus:Director12022-03-252022-12-3114002276bus:Director22022-03-252022-12-3114002276bus:Director32022-03-252022-12-3114002276bus:Director42022-03-252022-12-3114002276bus:CompanySecretary12022-03-252022-12-3114002276bus:RegisteredOffice2022-03-252022-12-31140022762022-12-3114002276core:LeaseholdImprovements2022-12-3114002276core:ConstructionInProgressAssetsUnderConstruction2022-12-3114002276core:PlantMachinery2022-12-3114002276core:ComputerEquipment2022-12-3114002276core:MotorVehicles2022-12-3114002276core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3114002276core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3114002276core:CurrentFinancialInstruments2022-12-3114002276core:ShareCapital2022-12-3114002276core:RetainedEarningsAccumulatedLosses2022-12-3114002276core:LeaseholdImprovements2022-03-252022-12-3114002276core:PlantMachinery2022-03-252022-12-3114002276core:ComputerEquipment2022-03-252022-12-3114002276core:MotorVehicles2022-03-252022-12-3114002276core:LeaseholdImprovements2022-03-2414002276core:ConstructionInProgressAssetsUnderConstruction2022-03-2414002276core:PlantMachinery2022-03-2414002276core:ComputerEquipment2022-03-2414002276core:MotorVehicles2022-03-24140022762022-03-2414002276core:ConstructionInProgressAssetsUnderConstruction2022-03-252022-12-3114002276core:WithinOneYear2022-12-3114002276core:Non-currentFinancialInstruments2022-12-3114002276bus:PrivateLimitedCompanyLtd2022-03-252022-12-3114002276bus:FRS1022022-03-252022-12-3114002276bus:Audited2022-03-252022-12-3114002276bus:FullAccounts2022-03-252022-12-31xbrli:purexbrli:sharesiso4217:GBP