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Centreline AV Limited

Annual Report and Financial Statements
Year Ended 30 September 2023

Registration number: 02333041

 

Centreline AV Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 29

 

Centreline AV Limited

Company Information

Directors

A C Paterson

S J Page

Company secretary

A C Paterson

Registered office

Centreline
Bristol Airport
Bristol
BS48 3DP

Auditors

PKF Francis Clark
Statutory Auditor
90 Victoria Street
Bristol
BS1 6DP

 

Centreline AV Limited

Strategic Report for the Year Ended 30 September 2023

The directors present their strategic report for the year ended 30 September 2023.

Principal activity

The principal activity of the company is the continuing provision of a full spectrum of business aviation services. Centreline holds an Air Operators Certificate and derives the majority of its revenue from aircraft management and charter. Other significant activities include scheduled and ad hoc aircraft handling and fuelling.

Fair review of the business

The company has built a strong position in the business aviation sector and was well-placed to weather the shocks presented to the industry during the COVID-19 pandemic. The directors have been able to continue with most elements of their strategy during the period, and has seen the industry return to pre pandemic conditions.

The medical charter division, was hardest hit during the pandemic, and cash flows were impacted as a result, although as predicted once commercial travel increased so did the demand for medical services, and improvements have been seen during the year.

Two new aircraft joined the charter fleet in the year one Embraer 300 and one Embraer 550, strengthening the businesses position within the UK Charter market.

The contract held with the UK Ministry of Defence, has performed well during the year, and an extension has been agreed for a further 30 months into 2026. The revenue stream has bolstered the diversity of the company, providing more stability for its employees and shareholders. Centreline has worked with the MOD on additional projects during the year.

The company has paid dividends during the period of £550,000 and net assets have correspondingly reduced.

The company's key financial performance indicators during the year were as follows:

 

Unit

2023

2022

Gross Profit Margin

%

32

32

Salaries as a % of turnover

%

17

19

Principal risks and uncertainties

Global supply chains remain a challenge. The residual effects of the pandemic and subsequent conflicts in Ukraine, the Middle East and East Africa have all caused disruption to historically reliable suppliers, leading in some cases to greatly extended downtime for aircraft. The directors have absolute confidence in our experienced and expert team to minimize such disruption and remain ahead of our competitors.

Aside from the on-going impact of the global pandemic, the company's principal risks and uncertainties are generated by economic forces and external events.

Its exposure to economic forces is largely mitigated by its clients being, for the most part, high net worth individuals who are relatively unaffected by economic uncertainty.

The company’s exposure to sterling/dollar exchange rate variations is low, whereas previously fuel for resale was purchased in USD$, it is now purchased in GBP£ therefore significantly reducing its currency exposure.

 

Centreline AV Limited

Strategic Report for the Year Ended 30 September 2023

Future developments

Subsequent to the financial year end, the business is working with the MOD on additional projects.

Approved and authorised by the Board on 28 March 2024 and signed on its behalf by:
 

.........................................
A C Paterson
Director

 

Centreline AV Limited

Directors' Report for the Year Ended 30 September 2023

The directors present their report and the financial statements for the year ended 30 September 2023.

Results and dividends

The profit for the year, after taxation, amounted to £812,314 (2022 - profit after taxation of £912,276).

A dividend was declared and paid during the period of £550,000 (2022 - £600,000).

Directors of the company

The directors who held office during the year were as follows:

A C Paterson

S J Page

Financial instruments

Objectives and policies

The company's principal financial instruments comprise bank balances and trade debtors and creditors.

Price risk, credit risk, liquidity risk and cash flow risk

The company’s overall objective is to ensure that it is able to meet its financial commitments as they fall due. Accordingly, surplus funds are held available to meet expected cash flows. The company deposits its money with reputable financial institutes.

The company uses borrowing facilities provided by its parent company and has access to overdraft facilities provided by Barclays. The maturity profile of banking facilities is regularly reviewed and such facilities are extended or replaced well in advance of their expiry.

The company’s credit risk is primarily attributable to its trade debtors. To manage this, few customer are offered credit terms and the company’s policy is to obtain appropriate credit checks on potential credit customer before sales are made.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 28 March 2024 and signed on its behalf by:
 

.........................................
A C Paterson
Director

 

Centreline AV Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Centreline AV Limited

Independent Auditor's Report to the Members of Centreline AV Limited

Opinion

We have audited the financial statements of Centreline AV Limited (the 'company') for the year ended 30 September 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 September 2023 and of its profit for the year 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.

Basis for opinion

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 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 director's 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 were 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.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Centreline AV Limited

Independent Auditor's Report to the Members of Centreline AV Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Centreline AV Limited

Independent Auditor's Report to the Members of Centreline AV Limited

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the company. We gained an understanding of the industry in which the company operates as part of this assessment to identify the key laws and regulations affecting the company. As part of this, we reviewed the company’s website for indication of any regulations and certification in place and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were the regulations of the Civil Aviation Authority (CAA) and Care Quality Commission (CQC), as well as tax legislation, employment law and breaches of The General Data Protection Regulation (“GDPR”). We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the company’s ability to continue operating and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements.

Reviewing CAA and CQC reports, and enquiries of management with regard to points raised and (where relevant) action plans developed.

Reviewing the Information Commissioner’s Office (ICO) website for any enforcement actions or decision notices impacting the company.

Reviewing the company’s GDPR policy and enquiries to management as to the occurrence and outcome of any reportable breaches.

Reviewing legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance.

As part of our enquiries, we discussed with management whether there had been any instances of known or alleged fraud, of which management confirmed there were none.

We assessed the susceptibility of the financial statements to material misstatement through management override or fraud, and obtained an understanding of the controls in place to mitigate the risk of fraud. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements. The key risk we identified was the overstatement of the financial position of the company for commercial purposes. Based upon our understanding we designed and conducted audit procedures including:

Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

Undertook specific cut-off procedures in respect of revenue recognition; and

Reviewing estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.

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. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

 

Centreline AV Limited

Independent Auditor's Report to the Members of Centreline AV Limited

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Paul Putnam BA ACA (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

90 Victoria Street
Bristol
BS1 6DP

4 April 2024

 

Centreline AV Limited

Profit and Loss Account

Year Ended 30 September 2023

Note

2023
 £

2022
 £

Turnover

3

28,304,998

26,203,671

Cost of sales

 

(19,164,445)

(17,739,589)

Gross profit

 

9,140,553

8,464,082

Administrative expenses

 

(8,073,329)

(7,337,258)

Operating profit

4

1,067,224

1,126,824

Other interest receivable and similar income

8

7,469

653

Interest payable and similar charges

9

(4,387)

(11,729)

Profit before tax

 

1,070,306

1,115,748

Taxation

10

(257,992)

(203,472)

Profit for the financial year

 

812,314

912,276

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Centreline AV Limited

Balance Sheet

30 September 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

11

1,561,298

1,267,791

Current assets

 

Stocks

13

196,662

168,939

Debtors

14

4,709,118

2,831,203

Cash at bank and in hand

15

349,020

1,403,753

 

5,254,800

4,403,895

Creditors: Amounts falling due within one year

16

(4,552,890)

(3,721,814)

Net current assets

 

701,910

682,081

Total assets less current liabilities

 

2,263,208

1,949,872

Creditors: Amounts falling due after more than one year

16

-

(56,083)

Provisions for liabilities

19

(114,389)

(7,284)

Net assets

 

2,148,819

1,886,505

Capital and reserves

 

Called up share capital

21

138,611

138,611

Share premium reserve

402,867

402,867

Profit and loss account

1,607,341

1,345,027

Total equity

 

2,148,819

1,886,505

Approved and authorised by the Board on 28 March 2024 and signed on its behalf by:
 

.........................................
A C Paterson
Director

Company Registration Number: 02333041

 

Centreline AV Limited

Statement of Changes in Equity

Year Ended 30 September 2023

Share capital
£

Share premium
£

Profit and loss account
£

Total
£

At 1 October 2022

138,611

402,867

1,345,027

1,886,505

Profit for the year

-

-

812,314

812,314

Dividends

-

-

(550,000)

(550,000)

At 30 September 2023

138,611

402,867

1,607,341

2,148,819

Share capital
£

Share premium
£

Profit and loss account
£

Total
£

At 1 October 2021

138,611

402,867

1,032,751

1,574,229

Profit for the year

-

-

912,276

912,276

Dividends

-

-

(600,000)

(600,000)

At 30 September 2022

138,611

402,867

1,345,027

1,886,505

 

Centreline AV Limited

Statement of Cash Flows

Year Ended 30 September 2023

Note

2023
 £

2022
 £

Cash flows from operating activities

Profit for the year

 

812,314

912,276

Adjustments to cash flows from non-cash items

 

Depreciation

4

280,884

229,687

Loss on disposal of tangible assets

17,180

-

Finance income

8

(7,469)

(653)

Finance costs

9

4,387

11,729

Corporation tax

10

257,992

203,472

 

1,365,288

1,356,511

Working capital adjustments

 

Increase in stocks

13

(27,723)

(159,029)

Increase in debtors

14

(1,877,915)

(264,249)

Increase in creditors

16

805,772

430,839

Increase in provisions

19

40,000

-

Cash generated from operations

 

305,422

1,364,072

Corporation tax received

10

-

18,240

Net cash flow from operating activities

 

305,422

1,382,312

Cash flows from investing activities

 

Interest received

 

7,469

653

Acquisitions of tangible assets

(607,077)

(275,258)

Proceeds from sale of tangible assets

 

15,506

-

Net cash flows from investing activities

 

(584,102)

(274,605)

Cash flows from financing activities

 

Interest paid

 

(4,387)

(11,729)

Repayment of loans and borrowings

 

(221,666)

(413,667)

Dividends paid

22

(550,000)

(600,000)

Net cash flows from financing activities

 

(776,053)

(1,025,396)

Net (decrease)/increase in cash and cash equivalents

 

(1,054,733)

82,311

Cash and cash equivalents at 1 October

 

1,403,753

1,321,442

Cash and cash equivalents at 30 September

15

349,020

1,403,753

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office and principal place of business is:
Centreline
Bristol Airport
Bristol
BS48 3DP
United Kingdom

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and the Companies Act 2006. There are no material departures from FRS 102.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The functional currency of the company is considered to be pounds sterling, because this is the currency of the primary economic environment in which the company operates.

Going concern

The directors have prepared detailed financial forecasting to December 2024, and long range reviews to 2027, including cash analysis to 2027. They have considered possible plausible downsides within these forecasts.

The directors are satisfied, based on these forecasts, that the company will continue to meet its liabilities as they fall due, and are satisfied that the company will continue to operate with sufficient cash headroom for a period of at least 12 months (from the date of approval of these financial statements).

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

Key accounting judgements and sources of estimation uncertainty

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The accounting estimates that have a significant effect on the amounts recognised in the financial statements are described below:

Aircraft are carried at cost, less accumulated depreciation and any subsequent accumulated impairment loss. This required an estimate of the depreciation rates used as well as assessment of the ongoing economic contribution and physical condition of the assets as to whether an indicator of impairment has occurred. The carrying amount is £651,934 (2022 -£381,331).

Provisions are held in relation to the CSAT contract for maintenance and other costs that arise under the terms of the contract. The costs to be incurred are estimated over the term of contract and actual costs incurred may differ from the provision. The carrying amount is £190,000 (2022 -£75,600).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

Revenue in respect of charter income is recognised on the charter date of the flight. Revenue in respect of engineering revenue is recognised on completion of the work. Revenue in respect of fixed based operations revenue is recognised on departure of the visiting aircraft. Revenue in respect of medical services is recognised on delivery of patients to their end destination.

In respect of contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect contracts for on-going services is recognised by reference to the stage of completion, which is dependent on the individual contracts.

For transactions where the company acts as agent, turnover shown in the profit and loss account is net commission earned and is recognised on completion of milestones.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Buildings

Over the period of the lease or 10-30 years straight line

Aircraft

20% straight line

Medical equipment

15% reducing balance

Other plant, property and equipment

Between 15% and 33% reducing balance method

Investments

Investments in subsidiaries are measured at cost less impairment.

Stocks

Stock is valued at the lower of cost and net realisable value, being selling cost less costs to sell.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Rentals payable under operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account on a straight line basis over the period of the lease.

Defined contribution pension obligation

The company operates a defined contribution pension plan for eligible employees. Contribution to the scheme are recognised in the profit and loss account in accordance with the scheme.

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Short term intra-group debtors and creditors
• Other loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

3

Turnover

The analysis of the company's turnover for the year by class of business is as follows:

2023
£

2022
£

Business aviation services

17,837,445

19,903,328

Medical services

5,202,920

3,086,023

Aviation contracts

5,264,633

3,214,320

28,304,998

26,203,671

All turnover arose within the United Kingdom, as with last year.

The comparative figures have been reanalysed to correctly show the income from business aviation contracts, as previously some had been reported within avaiton contracts. There has been no change to the total turnover figure.

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

4

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

280,884

229,687

Foreign exchange losses

15,149

37,001

Loss on disposal of property, plant and equipment

17,180

-

5

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

4,158,996

4,412,411

Social security costs

494,782

452,968

Pension costs, defined contribution scheme

105,625

82,383

4,759,403

4,947,762

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Engineering

2

3

Finance and administration

8

5

Sales, marketing and distribution

63

63

Management

3

3

76

74

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

6

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

149,250

118,333

Contributions paid to money purchase schemes

4,088

-

153,338

118,333

During the year the number of directors who were receiving benefits was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

1

1

One director (2022 - one) receives no remuneration from the company and is paid by another group company.

7

Auditor's remuneration

2023
£

2022
£

Audit of the financial statements

15,000

12,500


 

8

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

7,469

653

9

Interest payable and similar expenses

2023
£

2022
£

Interest expense on loans and borrowings

4,387

11,729

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

10

Taxation

Tax charged/(credited) in the profit and loss account

2023
 £

2022
 £

Current taxation

Group relief payable/(receivable)

190,887

221,399

Deferred taxation

Arising from origination and reversal of timing differences

59,075

(13,624)

Arising from changes in tax rates and laws

8,030

(4,303)

Total deferred taxation

67,105

(17,927)

Tax expense in the income statement

257,992

203,472

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 22.01% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,070,306

1,115,748

Corporation tax at standard rate

235,574

211,992

Expenses not deductible

3,222

418

Deferred tax expense/(credit) relating to changes in tax rates or laws

8,030

(4,303)

Tax increase/(decrease) from effect of capital allowances and depreciation

11,166

(4,635)

Total tax charge

257,992

203,472

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Fixed asset timing differences

-

146,596

Short term timing differences

72,207

-

72,207

146,596

2022

Asset
£

Liability
£

Fixed asset timing differences

-

67,660

Short term timing differences

60,376

-

60,376

67,660

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

11

Tangible assets

Buildings
£

Aircraft
 £

Medical equipment
 £

Other property, plant and equipment
 £

Total
£

Cost or valuation

At 1 October 2022

1,478,158

585,693

47,814

894,019

3,005,684

Additions

-

389,379

17,270

200,428

607,077

Disposals

-

-

(8,939)

(152,107)

(161,046)

At 30 September 2023

1,478,158

975,072

56,145

942,340

3,451,715

Depreciation

At 1 October 2022

952,281

204,362

4,000

577,250

1,737,893

Charge for the year

50,190

118,776

7,426

104,492

280,884

Eliminated on disposal

-

-

(1,765)

(126,595)

(128,360)

At 30 September 2023

1,002,471

323,138

9,661

555,147

1,890,417

Carrying amount

At 30 September 2023

475,687

651,934

46,484

387,193

1,561,298

At 30 September 2022

525,877

381,331

43,814

316,769

1,267,791

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

Included within the net book value of buildings above is £475,687 (2022 - £522,675) in respect of freehold buildings and £Nil (2022 - £3,202) in respect of short leasehold buildings.
 

12

Investments in subsidiaries

£

Cost or valuation

At 1 October 2022 and 30 September 2023

27,700

Provision

At 1 October 2022 and 30 September 2023

27,700

Carrying amount

At 30 September 2023

-

At 30 September 2022

-

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Centreline Air Charter Limited

Centreline,
Bristol International Airport,
Bristol,
BS48 3DP,
United Kingdom

Ordinary shares

100%

100%

 

     

Subsidiary undertakings

Centreline Air Charter Limited

The principal activity of Centreline Air Charter Limited is that of a dormant company.

13

Stocks

2023
£

2022
£

Raw materials and consumables

196,662

168,939

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

14

Debtors

2023
£

2022
£

Trade debtors

2,686,400

1,668,787

Amounts due from group undertakings

450,253

234,203

Other debtors

428,188

277,698

Prepayments and accrued income

1,144,277

650,515

4,709,118

2,831,203

15

Cash and cash equivalents

2023
£

2022
£

Cash at bank

349,020

1,403,753

Analysis of cash and net debt

At 1 October 2022

Cash flow

Non-cash movements

At 30 September 2023

£

£

£

£

Cash at bank and on hand

1,403,753

(1,054,733)

-

349,020

1,403,753

(1,054,733)

-

349,020

Debt:

Loans from group companies

(277,083)

221,666

-

(55,417)

(277,083)

221,666

-

(55,417)

Net cash

1,126,670

(833,067)

-

293,603

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

16

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

17

55,417

221,000

Trade creditors

 

1,906,991

1,714,663

Amounts due to group undertakings

 

709,917

502,929

Social security and other taxes

 

179,415

122,924

Outstanding defined contribution pension costs

 

24,424

47,914

Other creditors

 

62,501

98,675

Accruals and deferred income

 

1,614,225

1,013,709

 

4,552,890

3,721,814

Due after one year

 

Loans and borrowings

17

-

56,083

17

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Loans from group companies

-

56,083

2023
£

2022
£

Current loans and borrowings

Loans from group companies

55,417

221,000

The loan is repayable in monthly installments, with the final payment due in December 2023. Interest on the loan is 2.5% per annum.

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

18

Obligations under leases

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

42,518

52,300

Later than one year and not later than five years

14,379

37,725

Later than five years

2,397

-

59,294

90,025

The amount of non-cancellable operating lease payments recognised as an expense during the year was £56,334 (2022 - £60,485).

19

Provisions

Deferred tax
£

Other provisions
£

Total
£

At 1 October 2022

7,284

-

7,284

Additional provisions

-

40,000

40,000

Increase in existing provisions

67,105

-

67,105

At 30 September 2023

74,389

40,000

114,389

20

Pension scheme

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £105,625 (2022 - £82,383).

Contributions totalling £24,424 (2022 - £47,914) were payable to the scheme at the end of the year.

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

21

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A shares of £1 each

138,611

138,611

138,611

138,611

         

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
Ordinary shares carry full voting, dividend and capital distribution (including on a winding up) rights.

22

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £3.97 (2022 - £4.33) per each ordinary A share

 

550,000

 

600,000

         
 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

23

Related party transactions


 

Summary of transactions with other related parties

Fellow (non wholly owned) subsidiaries
 During the year, the company recognised sales in respect of charter services, engineering services and fixed base operations services for aircraft managed by the company for the wider group. The company recognised amounts payable for group relief received from its fellow subsidiaries.
 

Income and receivables from related parties

2023

Other related parties
£

Sales to related parties

1,729,474

Expenditure recharged to related parties

2,697,322

4,426,796

Amounts receivable from related party

380,199

2022

Other related parties
£

Sales to related parties

2,773,191

Expenditure recharged to related parties

730,095

3,503,286

Amounts receivable from related party

233,779

Expenditure with and payables to related parties

2023

Other related parties
£

Purchases from related parties

1,628,925

Group relief payable to related parties

190,887

1,819,812

Amounts payable to related party

709,918

 

Centreline AV Limited

Notes to the Financial Statements

Year Ended 30 September 2023

2022

Other related parties
£

Purchases from related parties

2,457,681

Group relief payable

221,399

2,679,080

Amounts payable to related party

502,929

24

Parent and ultimate parent undertaking

The company's immediate parent is Pula Aviation Services Limited, incorporated in Guernsey.

 The ultimate parent is Pula Limited, incorporated in Guernsey.

 The ultimate controlling party is Mr SP and Mrs MA Lansdown.