Company registration number 14288467 (England and Wales)
G650ER LEASING LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
G650ER LEASING LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
G650ER LEASING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
Notes
£
£
Fixed assets
Tangible assets
3
28,482,597
Current assets
Debtors
4
1,439,557
Creditors: amounts falling due within one year
5
(15,903,193)
Net current liabilities
(14,463,636)
Total assets less current liabilities
14,018,961
Creditors: amounts falling due after more than one year
6
(16,076,120)
Net liabilities
(2,057,159)
Capital and reserves
Called up share capital
7
1
Profit and loss reserves
(2,057,160)
Total equity
(2,057,159)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 15 October 2024
P F G Amandini
Director
Company registration number 14288467 (England and Wales)
G650ER LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
G650ER Leasing Limited is a private company limited by shares incorporated in England and Wales. The registered office is 73 Cornhill, London, EC3V 3QQ.
1.1
Reporting period
These financial statements represent the first period of accounts from incorporation to 31 December 2023. This period is for 17 months from 10 August 2022 to 31 December 2023.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.3
Going concern
The financial statements have been prepared using the going concern basis of accounting. The directors have reviewed the company's going concern position taking into account its current business activities, budgeted performance and factors likely to affect its future performance.true
Based on the information contained within the accounts and including consideration of the risks associated with the current macro-economic climate, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future,
As at 31 December 2023, the company had net current liabilities of £14,463,636 and net liabilities of £2,057,159. The main driver of the net current liability position is the balance due to its group undertaking of £13,933,329. The counter party associated with the amounts due to the group undertaking has provided confirmation to the director that the balance will not be called for repayment within twelve months of the signing of these financial statements.
The ultimate parent undertaking, Fouad Alghanim & Sons Group of Companies Holding W.L.L., have confirmed their intention to provide financial support, should it be required over the twelve months from the date of signing these financial statements.
1.4
Turnover
Turnover represents amounts receivable for services. Charter rental income is recognised when the service is provided and the aircraft is available for use, and on the raising of invoices with its related undertaking. A charter rental loss, which arises when income derived from flights are less than the operating costs for an accounting period, are reflected under cost of sales.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
G650ER LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Aircraft
On cost over 21 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss account.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the profit and loss account, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the profit and loss account, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
G650ER LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the profit and loss account.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the profit and loss account.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank finance lease and a loan from the parent undertaking are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
G650ER LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the profit and loss account. Non monetary assets are not retranslated at each period end.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
Number
Total
G650ER LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 6 -
3
Tangible fixed assets
Aircraft
£
Cost
At 10 August 2022
Additions
30,040,397
At 31 December 2023
30,040,397
Depreciation and impairment
At 10 August 2022
Depreciation charged in the period
1,557,800
At 31 December 2023
1,557,800
Carrying amount
At 31 December 2023
28,482,597
The addition in the period reflects the transfer of the aircraft at its net book value from a related UK entity in October 2022.
4
Debtors
2023
Amounts falling due within one year:
£
Amount owed by related undertaking
105,645
Other debtors
1,333,912
1,439,557
5
Creditors: amounts falling due within one year
2023
£
Obligations under finance leases
1,955,464
Amounts owed to group undertakings
13,933,329
Accruals and deferred income
14,400
15,903,193
6
Creditors: amounts falling due after more than one year
2023
Notes
£
Obligations under finance leases
16,076,120
G650ER LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
6
Creditors: amounts falling due after more than one year
(Continued)
- 7 -
A secured debt amounting to $22,954,747 is included within creditors.
There is a fixed legal charge over the leased aircraft in favour of Credit Suisse.
7
Called up share capital
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
1
1
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Saskia Harrison
Statutory Auditor:
Gerald Edelman LLP
Date of audit report:
15 October 2024
9
Related party transactions
At the period end, an amount of £13,933,329 was due to Fouad Alghanim and Sons General Trading and Contracting Company W.L.L.. This amount is provided unsecured, interest free and there are no fixed terms for repayment.
Mr F Alghanim has provided a personal guarantee to meet any shortfall in financial obligations under the lease agreements with the company's bankers, on behalf of this company.
During the period, a net charter rental income of £1,604,336 was generated by Gainjet Aviation S.A., a company registered in Greece. This related to the operation of the aircraft.
An amount of £1,116,045 was accrued for in relation to Gainjet Aviation S.A. and included within other debtors at the period end. Additionally, an amount of £105,645 was due from Gainjet Aviation S.A. at the period end.
During the period, commission of £384,015 on gross sales was charged by Gainjet Aviation S.A. for chartering the aircraft. Mr F Alghanim has an influence on both entities.
During the period, Howard Kennedy LLP charged legal fees of £5,266 for services provided. P Amandini is a partner in this legal practice.
10
Parent company
The immediate parent undertaking is Fouad Alghanim & Sons General Trading and Contracting Company W.L.L., an entity registered in Kuwait.
The ultimate parent undertaking is Fouad Alghanim & Sons Group of Companies Holding W.L.L., an entity registered in Kuwait.