Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31false2023-01-01Charter of aircraft, the provision of executive jet services and aircraft management115120truefalse 03640741 2023-01-01 2023-12-31 03640741 2023-12-31 03640741 2022-01-01 2022-12-31 03640741 2022-12-31 03640741 2022-01-01 03640741 c:Director1 2023-01-01 2023-12-31 03640741 c:Director2 2023-01-01 2023-12-31 03640741 c:RegisteredOffice 2023-01-01 2023-12-31 03640741 d:Buildings d:ShortLeaseholdAssets 2023-01-01 2023-12-31 03640741 d:Buildings d:ShortLeaseholdAssets 2023-12-31 03640741 d:Buildings d:ShortLeaseholdAssets 2022-12-31 03640741 d:LandBuildings 2023-12-31 03640741 d:LandBuildings 2022-12-31 03640741 d:FurnitureFittings 2023-01-01 2023-12-31 03640741 d:FurnitureFittings 2023-12-31 03640741 d:FurnitureFittings 2022-12-31 03640741 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03640741 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03640741 d:ComputerSoftware 2023-12-31 03640741 d:ComputerSoftware 2022-12-31 03640741 d:OtherResidualIntangibleAssets 2023-01-01 2023-12-31 03640741 d:CurrentFinancialInstruments 2023-12-31 03640741 d:CurrentFinancialInstruments 2022-12-31 03640741 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 03640741 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 03640741 d:ReportableOperatingSegment1 2023-01-01 2023-12-31 03640741 d:ReportableOperatingSegment1 2022-01-01 2022-12-31 03640741 d:ReportableOperatingSegment2 2023-01-01 2023-12-31 03640741 d:ReportableOperatingSegment2 2022-01-01 2022-12-31 03640741 d:UKTax 2023-01-01 2023-12-31 03640741 d:UKTax 2022-01-01 2022-12-31 03640741 d:ShareCapital 2023-12-31 03640741 d:ShareCapital 2022-01-01 2022-12-31 03640741 d:ShareCapital 2022-12-31 03640741 d:ShareCapital 2022-01-01 03640741 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 03640741 d:RetainedEarningsAccumulatedLosses 2023-12-31 03640741 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 03640741 d:RetainedEarningsAccumulatedLosses 2022-12-31 03640741 d:RetainedEarningsAccumulatedLosses 2022-01-01 03640741 c:OrdinaryShareClass1 2023-01-01 2023-12-31 03640741 c:OrdinaryShareClass1 2023-12-31 03640741 c:OrdinaryShareClass1 2022-12-31 03640741 c:FRS102 2023-01-01 2023-12-31 03640741 c:Audited 2023-01-01 2023-12-31 03640741 c:FullAccounts 2023-01-01 2023-12-31 03640741 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 03640741 d:WithinOneYear 2023-12-31 03640741 d:WithinOneYear 2022-12-31 03640741 d:BetweenOneFiveYears 2023-12-31 03640741 d:BetweenOneFiveYears 2022-12-31 03640741 d:ComputerSoftware d:ExternallyAcquiredIntangibleAssets 2023-01-01 2023-12-31 03640741 2 2023-01-01 2023-12-31 03640741 d:Associate1 2023-01-01 2023-12-31 03640741 d:Associate1 1 2023-01-01 2023-12-31 03640741 d:ComputerSoftware d:OwnedIntangibleAssets 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 03640741







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023


TAG AVIATION (UK) LIMITED






































img12ca.png                        

 


TAG AVIATION (UK) LIMITED
 


 
COMPANY INFORMATION


Directors
J T Goodall 
J Shen 




Registered number
03640741



Registered office
Business Aviation Centre
Farnborough Airport

Farnborough

Hampshire

GU14 6XA




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

1st Floor

Midas House

62 Goldsworth Road

Woking

Surrey

GU21 6LQ





 


TAG AVIATION (UK) LIMITED
 



CONTENTS



Page
Strategic Report
1 - 4
Directors' Report
5 - 7
Independent Auditors' Report
8 - 11
Statement of Comprehensive Income
12
Statement of Financial Position
13
Statement of Changes in Equity
14
Notes to the Financial Statements
15 - 27


 


TAG AVIATION (UK) LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present their Strategic Report for the financial year ended 31 December 2023.

Review of the business
 
The Company is a subsidiary of TAG Aviation SA. The Company’s principal activities are the charter of aircraft, aircraft management and the provision of other executive jet services.
There have not been any significant changes in the Company’s principal activities in the year under review.
The Company benefited from the continued strong demand for Charter as individuals and companies returned to the market following the pandemic. Flight activity is now back ahead of pre-COVID levels.
The Directors have taken a forward-looking view and are not aware, at the date of this report, of any likely changes in the Company’s activities in the next year.
Turnover for the financial year amounted to £63,453,222 (2022: £68,636,729). The Company incurred a loss after taxation totalling £848,497 (2022: £1,680,042). The loss has decreased year on year due to an improvement in overall performance.
The prior year loss included a large deferred tax adjustment.
The net current liability position of the Company as at the financial year end amounted to £1,701,342 (2022: £864,160).
The net liability position of the Company as at the financial year end amounted to £1,453,430 (2022: £604,933), of which net amounts of £354,763 were due from fellow group entities (2022: £1,044,326 due to fellow group entities). The directors have received confirmation these amounts will not be recalled to the detriment of the Company.
The directors do not recommend payment of a dividend (2022: £Nil).

Future developments

The Company plans to continue rebuilding the business following the pandemic, with focus on growing the fleet. Aircraft Management is also seeing an increase in the level of transactional activity, with three new aircraft having joined the fleet already in 2024. 

Page 1

 


TAG AVIATION (UK) LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
The management of the business and the execution of the Company’s strategy are subject to several risks. Risks are reviewed by management and appropriate processes are put in place to monitor and mitigate them.
Competitive threats
The biggest threat to the Company is competition. The Company operates in a highly competitive market particularly around price and service offering. This results in downward pressure on margins. The Company undertakes routine market research to understand clients’ expectations and to determine whether those expectations are being met. The Company then amends its offering to meet or exceed clients’ expectations in order to maintain a competitive advantage. 
Retention of key employees
The Company’s performance depends largely on its staff. The resignation of key individuals and the inability to recruit people with the right experience and skills could adversely impact the Company’s results. To mitigate these issues the Company invests in training programmes and has schemes linked to the Company’s results that are designed to retain key staff.
Russian invasion of Ukraine
The Company experienced a drop in flight activity during the early days of the invasion and one of the Company’s managed aircraft remains grounded as a result of the restrictions introduced by governments, regulators and manufacturers. This resulted in a drop in the variable revenue the company generates from flight activity. The Company continues to work with the regulators and the aircraft owner to seek an acceptable solution for this aircraft.
Brexit
The Company continues to navigate its way through issues that have arisen from Brexit. The general feeling of uncertainty surrounding Brexit has resulted in a temporary drop in demand for the UK AOC. The Company has a sister company within the EU, in Malta. Some existing and new Clients have opted to put their aircraft on the Maltese AOC over the UK AOC, given the uncertainty. The Company generates revenue by providing services to the aircraft on the Malta AOC so is relatively unimpacted if a Client opts to move their aircraft from the UK AOC to the Malta AOC.

Key performance indicators ('KPIs')
 
Movement in charter sales
2023: 15% (2022: 55%). Year on year sales increase expressed as a percentage. The demand for Charter has continued to return as COVID restrictions have been lifted.
Movement in aircraft management fee income
2023: -8% (2022: -10%). Year on year management fee income decline expressed as a percentage. Given the uncertainty over Brexit, managed aircraft are favouring TAG's Maltese AOC over the UK AOC. TAG UK provides services to TAG's Malta company so it does generate revenue from these Malta registered aircraft.
Movement in training school revenue
2023: 18% (2022: -1%). Year on year increase in training revenue expressed as a percentage. The business is benefiting from the investment made in the new training school at Farnborough Airport.
Movement in flight planning revenue
2023: -25% (2022: 11%). Year on year flight planning revenue decrease expressed as a percentage. The decrease is partly due to reduced activity in the managed fleet. A short-term contract providing flight planning services to a third party has come to an end. TAG supported the third party to set up their own in-house flight planning team.

Page 2

 


TAG AVIATION (UK) LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial Risk Management Objectives and Policies
 
The Company's operations expose it to a variety of financial risks that include the effects of changes in price risk, credit risk, liquidity risk, cash flow risk, exchange risk and interest rate risk. The Company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Company by monitoring levels of debt finance and the related finance costs. The Company does not use derivative financial instruments to manage interest rate costs and as such no hedge accounting is applied.
Given the size of the Company; the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the Board. The policies set by the Board of directors are implemented by the Company's finance department.
Price risk
The Company is exposed to commodity price risk as a result of its operations. However, given the size of the Company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the Company's operations change in size or nature. The Company has no exposure to equity securities price risk as it holds no listed or other equity investments.
Credit risk
The Company has implemented policies that require appropriate credit checks on clients before sales are made. Credit risk is further mitigated by the requirement of managed aircraft clients to pay a deposit to cover the operating costs of the aircraft. There is no  significant concentration of credit risk with exposure spread over many customers.
Liquidity risk
The Company currently has no requirements for debt finance but maintains enough funds for operations.
Cash flow risk
The Company has a comfortable level of cash reserves and there is no perceived cash flow threat for the foreseeable
future.
Interest rate and exchange risk
The Company has interest bearing assets in the form of cash balances.
The Company has some exposure to foreign exchange risk’. The Company incurs costs and invoices customers in Euros, United States Dollars and Swiss Francs and this has created a charge of £109,571 in the year (2022 £379,975).
The exposure to interest rate and exchange risk is not material enough to justify the use of hedging activities.

Environment

The engine ground running noise pollution and the aircraft carbon emissions are the Company's main environmental issues. With regards to ground running noise pollutions, the Company keeps ground running times to the legal minimum as required by aircraft maintenance manual checks. The Company only manages modern aircraft which are designed to limit carbon emissions. The Company's clients pay to offset their carbon emissions through a variety of schemes including the EU's Emissions Trading Scheme. The Company's own emissions are limited to those from their offices in Farnborough.

Page 3

 


TAG AVIATION (UK) LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' statement of compliance with duty to promote the success of the Company
 
Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders and other matters in their decision making. The Board of Directors consider that the decisions they have made during the financial year and the way they have acted have promoted the success of the Company for the benefit of its members as a whole, having regard for the stakeholders and matters set out in S172 (1) (a-f) of the Act.
In 2023 the Directors continued to exercise all their duties, while having regard to these and other factors as they reviewed and considered principal decisions. Although the Company has multiple stakeholders the Board considers its key stakeholders to be its employees, customers, suppliers, regulator and local community.
Employees
The strength of the business is built on the hard work and dedication of all its employees. The Company aims to provide its employees with a safe environment to work in and with opportunities for their development. Regular meetings are held with the employees to ensure they are kept up to date and to give them the opportunity to ask questions.
Customers
The Company's clients are the reason the business exists. The Directors appreciate they have a choice so it is essential to the Company's future that it can consistently and continuously provides a high level of service. In doing so, the Company will build its brand and loyalty. The Company has a team of customer services professionals who communicate frequently with customers to keep them informed and to receive feedback.
Suppliers
The performance of its suppliers is critical to the efficient operation of the managed aircraft. The Company works closely with its key suppliers to ensure its clients receive the service they expect at good value for money. Regular meetings are held with key suppliers to discuss performance, to hear about new offerings and to explain the Company's changing requirements.
Regulators
The Company seeks to enjoy constructive and cooperative relationships with the bodies that regulate its activities. This helps the Company to maintain a reputation for high standards. There is frequent and open communication with our regulators.
Our Compliance team and our Operations teams have a close relationship with the UK CAA and they communicate with each other on a regular basis, e.g. to check to ensure the company is complying with all the regulations.
Local Community
The local community expects the Company to act as a responsible company and neighbour and to minimise any adverse impact it might have on the local community and the environment. The Company engages with the local community and seeks to support local charities and sports clubs.
Shareholders
The Company works very closely with its shareholder and immediate parent company. The Directors have a weekly meeting with shareholder representatives to discuss current performance and strategy.


This report was approved by the board and signed on its behalf.



................................................
J T Goodall
Director

Date: 26 June 2024

Page 4

 


TAG AVIATION (UK) LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors

The directors who served during the year were:

J T Goodall 
J Shen 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Directors' indemnities

The Company has made qualifying third-party indemnity provisions for the benefit of its Directors which were made during the financial year and remain in force at the date of this report.

Future developments

Details of future developments can be found in the Strategic Report on page 1 and form part of this report by cross-reference.

Page 5

 


TAG AVIATION (UK) LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Greenhouse gas emissions, energy consumption and energy efficiency action

The annual quantity of emissions in tonnes of carbon dioxide equivalent resulting from activities for which the Company is responsible were:




2023
2022
Emissions resulting from activities for which the Company is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (in tonnes of CO2 equivalent)

49.86

36.73
 
Emissions resulting from the purchase of the electricity by the Company for its own use, including the purposes of transport (in tonnes of CO2 equivalent)

60.92

56.68
 
Emissions resulting from the indirect activities for which the Company has consumed fuel for the purposes of transport (in tonnes of CO2 equivilant)

126

106
 
Intensity ratio: tCO2e / £1,000 of Turnover

0.00373

0.00291
 
Energy consumed from activities for which the Company is responsible involving the combustion of gas, or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Company for its own use, including for the purposes of transport, in kWh

573,828

467,466
 

Methodology:
 
The Company pays a rent that is inclusive of gas and other utilities. The landlord, Farnborough Airport is committed to reducing emissions accross the airport. The values of energy consumption are provided by the landlord, to give a total consumption in kWh used by the office.
 
Below are the conversion factors which are used to convert kWh into CO2e. These are then divided by 1000 for the tonne values.
 
Gas                 kWh * 0.18256
 
Electricity        kWh * 0.20707
 
The Company is actively looking for ways to reduce their carbon footprint, such as prioritising electric cars for customer transportation wherever possible.

Matters covered in the Strategic Report

The Company has chosen in accordance with section 414C(11) of the Companies Act 2006 to set out in the Company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and exposure to risk.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 6

 


TAG AVIATION (UK) LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





................................................
J T Goodall
Director

Date: 26 June 2024

Page 7

 


TAG AVIATION (UK) LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TAG AVIATION (UK) LIMITED

Opinion


We have audited the financial statements of TAG Aviation (UK) Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 2023 and of its loss 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


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.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 8

 


TAG AVIATION (UK) LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TAG AVIATION (UK) LIMITED (CONTINUED)

Opinion on other matters 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 the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the 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 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 Strategic Report or 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 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 Directors' Responsibilities Statement 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.


Page 9

 


TAG AVIATION (UK) LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TAG AVIATION (UK) LIMITED (CONTINUED)

Auditors' 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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


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

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:

The Companies Act 2006;
Financial Reporting Standard 102;
UK Employment Legislation;
UK Health and Safety Legislation; 
General Data Protection Regulations; and
Russian Trade Sanctions. 

Additionally, the Company are regulated by
The Civil Aviation Authority (CAA).

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures. We obtained certificates of compliance with the CAA regulations to understand how the Company has complied with the relevant regulations. We corroborated our inquiries through our review of legal expenditure and board minutes for the year.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgments made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
 
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
Posting of journals to the accounting software which are of a non-routine nature in terms of timing and amount;
Timing of revenue recognition; and
The use of management override of controls to manipulate results.
 

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


Page 10

 


TAG AVIATION (UK) LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TAG AVIATION (UK) LIMITED (CONTINUED)

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Tom Woods FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
1st Floor
Midas House
62 Goldsworth Road
Woking
Surrey
GU21 6LQ

26 June 2024
Page 11

 


TAG AVIATION (UK) LIMITED
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
63,453,222
68,636,729

Cost of sales
  
(60,456,305)
(66,275,984)

Gross profit
  
2,996,917
2,360,745

Administrative expenses
  
(3,845,418)
(3,401,520)

Operating loss
 5 
(848,501)
(1,040,775)

Interest receivable and similar income
 9 
4
2,871

Loss before tax
  
(848,497)
(1,037,904)

Tax on loss
 10 
-
(642,138)

Loss for the financial year
  
(848,497)
(1,680,042)

Total comprehensive income for the year
  
(848,497)
(1,680,042)

The notes on pages 15 to 27 form part of these financial statements.

Page 12

 


TAG AVIATION (UK) LIMITED
REGISTERED NUMBER:03640741



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 11 
99,685
38,838

Tangible assets
 12 
146,536
218,698

Investments
 13 
1,691
1,691

  
247,912
259,227

Current assets
  

Stocks
 14 
58,086
95,364

Debtors: amounts falling due within one year
 15 
11,584,840
15,532,615

Cash at bank and in hand
  
1,259,805
1,486,359

  
12,902,731
17,114,338

Creditors: amounts falling due within one year
 16 
(14,604,073)
(17,978,498)

Net current liabilities
  
 
 
(1,701,342)
 
 
(864,160)

Total assets less current liabilities
  
(1,453,430)
(604,933)

  

Net liabilities
  
(1,453,430)
(604,933)


Capital and reserves
  

Called up share capital 
 17 
2,250,000
2,250,000

Profit and loss account
 18 
(3,703,430)
(2,854,933)

  
(1,453,430)
(604,933)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
J T Goodall
Director

Date: 26 June 2024

The notes on pages 15 to 27 form part of these financial statements.

Page 13

 


TAG AVIATION (UK) LIMITED
 



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
1,000,000
(1,174,891)
(174,891)


Comprehensive income for the year

Loss for the year
-
(1,680,042)
(1,680,042)


Contributions by and distributions to owners

Shares issued during the year
1,250,000
-
1,250,000



At 1 January 2023
2,250,000
(2,854,933)
(604,933)


Comprehensive income for the year

Loss for the year

-
(848,497)
(848,497)


At 31 December 2023
2,250,000
(3,703,430)
(1,453,430)


The notes on pages 15 to 27 form part of these financial statements.

Page 14

 


TAG AVIATION (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

TAG Aviation (UK) Limited (the Company) is a private company limited by shares incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is disclosed on the Company Information page, the principal place of activity is the same as the registered office.
The principal activities are disclosed in the Strategic Report.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The Company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. The Company is consolidated in the financial statements of its parent, TAG Aviation SA, which may be obtained from the address in Note 22. Exemptions have been taken in these separate Company financial statements in relation to financial instruments, presentation of a cash flow statement, and remuneration of key management personnel.
The Company has availed of the exemption provided in FRS 102 Section 33 Related Party Disclosures not to disclose transactions entered into with fellow group companies that are wholly owned within the group of companies of which the Company is a wholly owned member.

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on a going concern basis with the company reporting net liabilities of £1,453,430 as at the year end (2022: net liabilities of £604,933). The Directors consider this appropriate for the following reasons.
The Company holds cash balances to meet its day-to-day working capital requirements. The current economic conditions create uncertainty particularly over competition and consumer demand in the aviation sector; however the Company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Company will be able to operate within the level of its cash balance. A group company TAG Aviation Asia Limited has agreed to provide financial support (in the form of a letter of support), as required, to enable the Company to meet its financial obligations as and when they fall due for a period of at least twelve months from the date of approval of these financial statements.
TAG Aviation Asia Limited is willing to offer financial support since it provides the same services as the Company in the Asia region. Working together, the companies can provide their clients with an improved offering through their combined purchasing power and their global coverage. If the Company suffered financial difficulty then this could adversely impact TAG Aviation Asia's business.
After making enquires, the Directors are confident that the Company has adequate resources to continue in operating as a going concern for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 15

 


TAG AVIATION (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.4

Revenue

Turnover is stated net of VAT and trade discounts. Turnover from the supply of services through service agreements, which fall within the Company's activities, represents the value of services provided under agreements to the extent that there is a right to consideration and is recorded at the value of the consideration due. Where an agreement has only been partially completed at the year end, turnover represents the value of the service provided to date based on a proportion of the total contract value. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditor due within one year.
In the view of directors, all turnover in the year has arisen from the management and charter of aircraft, and associated services, in the United Kingdom.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income 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 income.

Page 16

 


TAG AVIATION (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Computer software
-
20% reducing balance

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold Improvements
-
10 years straight line
Fixtures and fittings
-
5 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Associates and joint ventures

Associates and Joint Ventures are held at cost less impairment.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 17

 


TAG AVIATION (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.12

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) 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. 
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). 
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, the Directors are required to make judgments, estimates and assumptions about the carrying amounts 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 financial year in which the estimate is revised if the revision affects only that financial year, or in the financial year of the revision and future financial years if the revision affects both current and future financial years. 
Other than the below, the directors do not consider that any critical judgments have been made in the application of the Company's accounting policies and no key sources of estimation uncertainty have been identified that have a significant risk of causing a material misstatement to the carrying amount of assets and liabilities within the financial year.

Key Accounting Judgment: Non-Recognition of Deferred Tax Asset
Under FRS 102, the recognition of a deferred tax asset is contingent upon the availability of future taxable profits against which the temporary differences and carried forward tax losses can be utilised. In making this assessment, the directors have determined that although there is a positive outlook, there is uncertainty around the timing and realisation of future profits. 
As a result, the directors have decided not to recognise a deferred tax asset of £1,095,612 (2022 - £900,598) in the financial statements for the year ended 31 December 2023. 
This judgement will be reviewed on an ongoing basis, and if future taxable profits become more probable, the recognition of the deferred tax asset will be reconsidered in accordance with FRS 102 requirements.

Page 18

 


TAG AVIATION (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Aircraft Management
45,335,236
52,835,291

Charter Revenue
18,117,986
15,801,438

63,453,222
68,636,729


In the view of the Directors, all turnover arose within the United Kingdom. 


5.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Exchange differences
109,571
379,975

Operating lease charges
728,744
573,116

Depreciation of owned tangible fixed assets
78,911
86,789

Amortisation of owned intangible fixed assets
6,698
4,963


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
37,150
34,750

Page 19

 


TAG AVIATION (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
9,352,983
8,538,200

Social security costs
1,115,621
1,070,206

Cost of defined contribution scheme
389,960
385,533

10,858,564
9,993,939


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Technical
81
89



Sales
11
9



Administration
23
22

115
120


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
224,233
259,826

Company contributions to defined contribution pension schemes
11,150
10,439

235,383
270,265


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £224,233 (2022 - £259,826).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £11,150 (2022 - £10,439).

The total accrued pension provision of the highest paid director at 31 December 2023 amounted to £1,858 (2022 - £Nil).

Page 20

 


TAG AVIATION (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest receivable

2023
2022
£
£


Bank and other interest receivable
4
2,871

4
2,871


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
(1,725)


-
(1,725)


Total current tax
-
(1,725)

Deferred tax


Origination and reversal of timing differences
-
643,863

Total deferred tax
-
643,863


Taxation on profit on ordinary activities
-
642,138
Page 21

 


TAG AVIATION (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(848,497)
(1,037,904)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
(199,572)
(197,202)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,887
2,845

Capital allowances for year in excess of depreciation
11,043
(57,700)

Removal of deferred tax asset
-
643,863

Other permanent differences
2,168
(840)

Unrelieved tax losses carried forward
195,014
251,172

Effect of change in tax rates
(11,540)
-

Total tax charge for the year
-
642,138


Factors that may affect future tax charges

In the Finance Bill 2021, the UK Government announced increases in the main UK corporation tax rate from 19% to 25% with effect from 1 April 2023. This change in rate was substantively enacted on 24 May 2021. As such, where deferred tax is recognised, it is at a rate of 25% in the current year (2022: 23.52%).

Page 22

 


TAG AVIATION (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Intangible assets




Computer software

£



Cost


At 1 January 2023
44,215


Additions
67,545



At 31 December 2023

111,760



Amortisation


At 1 January 2023
5,377


Charge for the year on owned assets
6,698



At 31 December 2023

12,075



Net book value



At 31 December 2023
99,685



At 31 December 2022
38,838



Page 23

 


TAG AVIATION (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets





Leasehold property
Fixtures and fittings
Total

£
£
£



Cost or valuation


At 1 January 2023
414,758
542,647
957,405


Additions
-
6,749
6,749



At 31 December 2023

414,758
549,396
964,154



Depreciation


At 1 January 2023
257,574
481,133
738,707


Charge for the year on owned assets
51,232
27,679
78,911



At 31 December 2023

308,806
508,812
817,618



Net book value



At 31 December 2023
105,952
40,584
146,536



At 31 December 2022
157,184
61,514
218,698




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Short leasehold
105,952
157,184

105,952
157,184


Page 24

 


TAG AVIATION (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Fixed asset investments





Investments

£



Cost or valuation


At 1 January 2023
1,691



At 31 December 2023
1,691







The following was an investment of the Company:


Name

Registered office

Class of shares

Holding

TAG Aviation Middle East
Office 102, Platinum Tower, Building 190, Road 2803, Block 428, Seef, Kingdom of Bahrain
Ordinary
1%

In the Directors' opinion, there is no impairment to the cost of the investment. All shares are held directly by TAG Aviation (UK) Limited.


14.


Stocks

2023
2022
£
£

Finished goods and goods for resale
58,086
95,364

58,086
95,364


The above stock value is stated after taking into account an impairment provision of £147,358 (2022: £205,496).

Page 25

 


TAG AVIATION (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Debtors

2023
2022
£
£


Trade debtors
6,546,224
12,032,993

Amounts owed by group undertakings
1,955,369
741,589

Other debtors
925,226
696,659

Prepayments and accrued income
2,158,021
2,061,374

11,584,840
15,532,615



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
5,291,517
4,625,372

Amounts owed to group undertakings
1,600,606
1,785,915

Other taxation and social security
147,963
75,012

Other creditors
6,214,009
10,122,417

Accruals and deferred income
1,349,978
1,369,782

14,604,073
17,978,498



17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,250,000 (2022 - 2,250,000) Ordinary shares of £1.00 each
2,250,000
2,250,000



18.


Reserves

Profit and loss account

The profit and loss account reserve represents cumulative profits or losses.


19.


Pension commitments

The Company operates a defined contribution retirement benefit scheme for all qualifying employees. The total expenses charged to the Profit and Loss Account in the year ended 31 December 2023 was £389,960 (2022: £385,533). Pension payments due as at the year end amounted to £69,435 (2022: £nil).

Page 26

 


TAG AVIATION (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
757,291
599,588

Later than 1 year and not later than 5 years
1,514,583
1,798,763

2,271,874
2,398,351


21.


Related party transactions

In accordance with FRS 102 paragraph 33.1A the entity has not disclosed transactions entered into between two or more members of a group.
During the year £783,424 (2022: £770,841) was paid to Key Management Personnel.


22.


Controlling party

The Company's immediate parent undertaking is TAG Aviation SA incorporated in Switzerland. Tag Aviation SA is also the smallest and largest group in which the company's results are consolidated. The consolidated accounts are available from the parent company's website at www.tagaviation.com. Its registered address is Route de Pre Bois 14, 1216 Cointrin, Geneva, Switzerland.
The Company's ultimate parent company is T Era Holdings Limited, a company incorporated in Hong Kong.
The directors consider J T Goodall to be the ultimate controlling party by the virtue of their shareholdings.

 
Page 27