Aviate Management Limited
Annual report and financial statements
For the year ended 30 June 2024
Aviate Management Limited
Company information
Directors
Mr M W Edwards
Ms E J Bond
(Appointed 12 October 2023)
Company number
06745115
Registered office
Chester House
Lloyd Drive
Cheshire Oaks Business Park
Ellesmere Port
Cheshire
England
CH65 9HQ
Auditor
DJH Audit Limited
Chester House
LLoyd Drive
Ellesmere Port
Cheshire
United Kingdom
CH65 9HQ
Aviate Management Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 29
Aviate Management Limited
Strategic report
For the year ended 30 June 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Review of business
Following on from Financial Year 2022/23 the business turnover for the year was a record £296.84m (2022/23 £265.16m) with a gross profit of £10.20m (3.44%) (2022/23 £8.03m (3.03%)).
The company has continued to build on the prior year growth by attracting new customers in addition to further developing the business from the existing customer base. Innovation continues to be at the forefront of the company’s ethos and this alongside the company’s value to provide exceptional customer service has enabled the company to continue to develop and attract this additional business.
The directors and senior management continue to adapt and seize these opportunities, seeking to strengthen the business in both the immediate term and long term.
During the year £500k of the RLS loan was repaid.
The directors consider these indicators to best communicate the financial performance and strength of the company.
Future developments
The directors are confident that the company is in a sound position to further grow revenues in the ensuing financial years through the implementation of new business streams, target marketing and the development of commercial relationships with key partners and airline partners.
The company has continued to advance its computer systems, making it well placed to service the business growth. The directors remain confident that the investment for the longer term is sound and will support and enable additional future revenue.
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and straightforward nature of our business and has been written in the context of the market sector we operate in.
Principal risks and uncertainties including financial instruments.
Risks are identified and routinely monitored, with appropriate actions taken to mitigate their potential adverse consequences on the company’s performance objectives.
Risks include the potential for deterioration in relationships with the airlines and tour operators, failure of vital technology or information systems, the loss of key personnel, and failure of debtors to settle balances due.
In the year in question the company only has financial assets and liabilities such as trade debtors and creditors arising directly from its operations.
All operators who trade on credit terms are subject to continuing credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts when necessary.
The company manages its cash surpluses to maximise interest income whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business. All cash surpluses are only invested through banks and companies approved by the board. Prolonged economic uncertainty and a drop in interest rates could hinder the earning potential for the company on its cash assets.
Aviate Management Limited
Strategic report (continued)
For the year ended 30 June 2024
- 2 -
Promoting the success of the company
Section 172 of the Companies Act requires a director of a company to act in the way he or she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In doing so, s172 requires a director to have regard, amongst other matters, to the :-
likely consequences of any decision in the long term,
need to foster the company’s business relationships with suppliers, customers and others,
impact of the company’s operations in the community and the environment,
desirability of the company maintaining a reputation for high standards of business conduct, and,
need to act fairly between members of the company.
In discharging section 172 duties the directors consider the factors set out above as well as other factors they consider relevant to the decision being made. The directors seek to ensure that their decision making process not only takes into account the company’s purpose, vision and values, together with its strategic priorities, but also reflects as far as practical and possible the interests of all stakeholders.
The directors delegates authority for the day-to-day management of the company to the senior leadership team and engages management in setting, approving and overseeing execution of the business strategy and related policies. The directors review and approve key financial and operational performance, legal and regulatory compliance and other key risks at board meetings.
Detailed below are examples of how the directors have discharged their duties :-
| | Stakeholder consideration in the directors decision making |
Customers We work closely with our customers to understand their evolving needs so the company can improve and adapt to meet these needs. | To have a strong customer focus and understand that the best service we can offer our customers will deliver best value. | Long-term customer engagement is a key part of the company culture through developing new propositions and innovating existing ones. The company’s market growth in the last 12 months has resulted from maintaining high levels of quality service and proactive customer engagement. The directors believe in continuous innovation to ensure our products are market-leading and provide our customers with breadth of products to support their growth and market demands. |
Aviate Management Limited
Strategic report (continued)
For the year ended 30 June 2024
- 3 -
Promoting the success of the company cont...
Employees Our people are a critical part of delivering the company strategy and creating value. | The company has a strong culture to ensure the development and support for all employees. The company has invested in the development of the ‘TIG Academy’ which delivers a full training plan for all employees that covers technical and soft skills training including regular updates to ensure knowledge is retained. During the year the company has employed a Welfare and Occupational Therapist who has great experience and expertise to ensure wellness and welfare within the workplace. | The directors have a strong belief that all employees are key to the success of the company and their constant support is clearly visible for all employees to see. |
Regulators A good working relationship with the regulators ensures that the company continues to thrive and develop. | The company maintains a close relationship with regulators and proactively engages with them on any issues ensuring they are rectified quickly and efficiently. | The CFO focuses on compliance and attends the company’s board meetings to raise any relevant issues that need to be considered in any decision making of the directors. |
Mr M W Edwards
Director
13 December 2024
Aviate Management Limited
Directors' report
For the year ended 30 June 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company in the year under review was that of providing travel industry services relating to airline ticketing and tour operating.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M W Edwards
Ms E J Bond
(Appointed 12 October 2023)
Auditor
DJH Audit Limited were appointed auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
The company's greenhouse gas emissions and energy consumption are as follows:-
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
224,511
191,878
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
3.41
2.66
- Fuel consumed for owned transport
-
-
3.41
2.66
Scope 2 - indirect emissions
- Electricity purchased
42.63
36.72
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
-
Total gross emissions
46.04
39.38
Intensity ratio
Tonnes of CO2e per full-time employee
0.26
0.23
Aviate Management Limited
Directors' report (continued)
For the year ended 30 June 2024
- 5 -
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per full-time employee.
Measures taken to improve energy efficiency
All meeting rooms across the Group are installed with the latest video conferencing technology for staff meetings, to reduce the need for travel between sites.
All thermostats are centrally controlled to ensure they work at the most efficient level and all air conditioning units are regularly serviced. Blinds are installed on every window to assist with the improvement in efficiency.
The Company has introduced a scheme to encourage the purchase of electric cars and to support this it has installed 4 recharge points in the office car park.
The Company offers a cycle MOT scheme in addition to cycle shelters to encourage staff to cycle to work.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and financial instruments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr M W Edwards
Director
13 December 2024
Aviate Management Limited
Directors' responsibilities statement
For the year ended 30 June 2024
- 6 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
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 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.
AVIATE MANAGEMENT LIMITED
Aviate Management Limited
Independent auditor's report
TO THE MEMBERS OF AVIATE MANAGEMENT LIMITED
- 7 -
Opinion
We have audited the financial statements of Aviate Management Limited (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 June 2024 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
AVIATE MANAGEMENT LIMITED
Aviate Management Limited
Independent auditor's report (continued)
TO THE MEMBERS OF AVIATE MANAGEMENT LIMITED
- 8 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the 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 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, 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.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and management.
AVIATE MANAGEMENT LIMITED
Aviate Management Limited
Independent auditor's report (continued)
TO THE MEMBERS OF AVIATE MANAGEMENT LIMITED
- 9 -
Our approach was as follows
We obtained an understanding of the legal and regulatory framework that is applicable to the company and determined that the most significant are frameworks which are directly relevant to the assertions in the financial statements including amounts and disclosures; those that relate to reporting framework FRS 102; the Companies Act 2006 and UK taxation legislation.
We assessed how the company is complying with those frameworks by:
- making enquiries of management and;
- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations together with the use of an appropriate software package to check the disclosures required by the relevant accounting standards and legislation.
We assessed the susceptibility of the company’s financial statements to material misstatement including how fraud might occur. The risk of fraud associated with management override of controls is always deemed high and we performed audit procedures to address this specific risk including testing journal entries and other adjustments for appropriateness; also assessing whether judgements and assumptions used in accounting estimates were indicative of potential bias.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Desirie Lea FCA FCCA (Senior Statutory Auditor)
For and on behalf of DJH Audit Limited
17 December 2024
Accountants
Statutory Auditor
Chester House
LLoyd Drive
Ellesmere Port
Cheshire
United Kingdom
CH65 9HQ
Aviate Management Limited
Profit and loss account
For the year ended 30 June 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
296,839,533
265,165,331
Cost of sales
(286,639,319)
(257,132,913)
Gross profit
10,200,214
8,032,418
Administrative expenses
(9,620,116)
(7,288,125)
Other operating income
16,950
Operating profit
6
580,098
761,243
Interest receivable and similar income
7
948,658
336,091
Interest payable and similar expenses
8
(165,768)
(146,062)
Profit before taxation
1,362,988
951,272
Tax on profit
9
(344,838)
(188,438)
Profit for the financial year
1,018,150
762,834
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Aviate Management Limited
Statement of comprehensive income
For the year ended 30 June 2024
- 11 -
2024
2023
£
£
Profit for the year
1,018,150
762,834
Other comprehensive income
-
-
Total comprehensive income for the year
1,018,150
762,834
Aviate Management Limited
Balance sheet
As at 30 June 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
39,996
Current assets
Debtors
13
4,685,782
5,356,624
Cash at bank and in hand
24,666,963
16,764,635
29,352,745
22,121,259
Creditors: amounts falling due within one year
14
(25,211,591)
(18,528,252)
Net current assets
4,141,154
3,593,007
Total assets less current liabilities
4,141,154
3,633,003
Creditors: amounts falling due after more than one year
15
(1,000,000)
(1,500,000)
Provisions for liabilities
Deferred tax liability
17
9,999
-
(9,999)
Net assets
3,141,154
2,123,004
Capital and reserves
Called up share capital
19
100,000
100,000
Profit and loss reserves
20
3,041,154
2,023,004
Total equity
3,141,154
2,123,004
The financial statements were approved by the board of directors and authorised for issue on 13 December 2024 and are signed on its behalf by:
Mr M W Edwards
Director
Company registration number 06745115 (England and Wales)
Aviate Management Limited
Statement of changes in equity
For the year ended 30 June 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2022
100,000
1,260,170
1,360,170
Year ended 30 June 2023:
Profit and total comprehensive income
-
762,834
762,834
Balance at 30 June 2023
100,000
2,023,004
2,123,004
Year ended 30 June 2024:
Profit and total comprehensive income
-
1,018,150
1,018,150
Balance at 30 June 2024
100,000
3,041,154
3,141,154
Aviate Management Limited
Statement of cash flows
For the year ended 30 June 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
8,428,444
4,992,199
Interest paid
(165,768)
(146,062)
Income taxes paid
(208,119)
(140,012)
Net cash inflow from operating activities
8,054,557
4,706,125
Investing activities
Purchase of tangible fixed assets
(160,944)
Proceeds from disposal of tangible fixed assets
34,113
213,888
Loans made to other entities
(635,000)
Interest received
948,658
336,091
Net cash generated from investing activities
347,771
389,035
Financing activities
Repayment of bank loans
(500,000)
Net cash used in financing activities
(500,000)
-
Net increase in cash and cash equivalents
7,902,328
5,095,160
Cash and cash equivalents at beginning of year
16,764,635
11,669,475
Cash and cash equivalents at end of year
24,666,963
16,764,635
Aviate Management Limited
Notes to the financial statements
For the year ended 30 June 2024
- 15 -
1
Accounting policies
Company information
Aviate Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is Chester House, Lloyd Drive, Cheshire Oaks Business Park, Ellesmere Port, Cheshire, England, CH65 9HQ.
The principal place of business is World House, Lloyd Drive, Ellesmere Port, Cheshire, CH65 9HQ.
1.1
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.
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 £.
Statement of compliance
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.
In assessing the going concern position of the company, the directors have considered the company’s cash flows, liquidity and business activities including planning appropriate responses for a range of possible scenarios. The central assumption is that growth in business activities will continue with positive cash flows ongoing. The company’s financial modelling shows that the position remains manageable with headroom being maintained for working capital facilities even in the downside scenario.
1.2
Going concern
In assessing the going concern position of the company for the year ended 30 June 2024, the directors have considered the company’s cash flows, liquidity and business activities. Based on the company’s forecasts, the directors have adopted the going concern basis in preparing the financial statements.true
1.3
Turnover
Turnover represents amounts receivable for ticketing sales, excluding value added tax where applicable.
Revenue from the airline ticketing operation is recognised at the point of ticketing, when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Brand and design
4 years
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
- 16 -
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.
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:
Fixtures, fittings & equipment
5 years
Computer equipment
3 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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.
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
- 17 -
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.
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 profit or loss.
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 profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
- 19 -
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.
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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
The pension costs charged in the financial statements represent the contributions payable by the company during the year into a defined contribution and money purchase scheme on behalf of certain employees. The regular cost of providing retirement pensions and related benefits is charged to the profit and loss account over the employees’ service lives on the basis of a constant percentage of earnings. The assets of the scheme are held separately to those of the company in an independently administered fund.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
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 profit or loss.
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Revenue from airline ticketing
288,438,685
259,762,004
Revenue from packages
8,081,702
5,157,302
Other
319,146
246,025
296,839,533
265,165,331
2024
2023
£
£
Turnover analysed by geographical market
UK
295,600,357
263,540,729
Africa
1,239,176
1,624,602
296,839,533
265,165,331
2024
2023
£
£
Other revenue
Interest income
948,658
336,091
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
10,976
10,609
For other services
All other non-audit services
2,744
2,652
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 21 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Commercial inc sales and marketing
41
27
Tour operator partnerships
44
87
Finance
22
17
Travel agent partnerships
7
9
Systems and HR
27
19
Groups
39
14
Total
180
173
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
5,254,240
3,985,074
Social security costs
391,723
274,196
Pension costs
280,653
124,897
5,926,616
4,384,167
6
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
6,048
118,998
Fees payable to the company's auditor for the audit of the company's financial statements
10,976
10,609
Non-audit fees payable
2,744
2,652
Depreciation of owned tangible fixed assets
5,883
57,179
Operating lease charges
114,724
26,770
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
948,054
336,091
Other interest income
604
Total income
948,658
336,091
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
7
Interest receivable and similar income
(Continued)
- 22 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
948,054
336,091
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
165,768
146,062
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
353,622
226,689
Adjustments in respect of prior periods
2,521
(21,204)
Total current tax
356,143
205,485
Deferred tax
Origination and reversal of timing differences
(11,305)
(17,047)
Total tax charge
344,838
188,438
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
9
Taxation
(Continued)
- 23 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,362,988
951,272
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
340,747
195,011
Tax effect of expenses that are not deductible in determining taxable profit
13,161
15,096
Other permanent differences
(287)
16,582
Under/(over) provided in prior years
2,521
(21,204)
Deferred tax adjustments in respect of prior years
(1,592)
Deferred tax adjustments
(9,712)
(17,047)
Taxation charge for the year
344,838
188,438
10
Intangible fixed assets
Brand and design
£
Cost
At 1 July 2023 and 30 June 2024
2,325
Amortisation and impairment
At 1 July 2023 and 30 June 2024
2,325
Carrying amount
At 30 June 2024
At 30 June 2023
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 24 -
11
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 July 2023
18,460
398,358
416,818
Disposals
(37,129)
(37,129)
At 30 June 2024
18,460
361,229
379,689
Depreciation and impairment
At 1 July 2023
18,460
358,362
376,822
Depreciation charged in the year
5,883
5,883
Eliminated in respect of disposals
(3,016)
(3,016)
At 30 June 2024
18,460
361,229
379,689
Carrying amount
At 30 June 2024
At 30 June 2023
39,996
39,996
12
Cash
Included within cash are the following balances:-
2024
ABTA Bond - £144,575
Emirates Security Deposit - £5,000
Pegasus Bond - £1,703
2023
ABTA Bond - £118,000
Emirates Security Deposit - £5,000
Pegasus Bond - £1,703
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 25 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,204,536
3,302,803
Corporation tax recoverable
21,092
Amounts owed by group undertakings
383,000
Amounts due from related parties
252,000
Other debtors
146,007
122,391
Prepayments
194,510
118,747
Accrued income
2,504,423
1,791,591
4,684,476
5,356,624
Deferred tax asset (note 17)
1,306
4,685,782
5,356,624
IATA Note - Amounts owed from Calrom Limited of £0 (2023- £26,941), TIG – South Africa of £188,398 (2023-£247,838), TIG - Barbados £85,422 (2023 - £0) and TIG Ireland £72,824 (2023 -£0) are included within Trade Debtors. There are no other intercompany trade debtors outstanding at the year end.
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
500,000
500,000
Trade creditors
13,452,044
9,187,238
Corporation tax
353,622
226,690
Deferred income
7,538,317
5,627,707
Other creditors
1,040
Accruals
3,366,568
2,986,617
25,211,591
18,528,252
IATA Note - Amounts owed to Lime Management Limited of £0 (2023 - £7,369) are included within Trade Creditors. There are no other intercompany trade creditors outstanding at the year end.
The net amount due to BSP for tickets issued in June 2024 that will be paid in July 2024 is £17,423,871 (2023 £9,966,180). The payment date for half of the monthly tickets has been moved from the final day of the current month in which the tickets were issued (as per last year), to the first day of the following month in which the tickets were issued.
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 26 -
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
1,000,000
1,500,000
16
Loans and overdrafts
2024
2023
£
£
Bank loans
1,500,000
2,000,000
Payable within one year
500,000
500,000
Payable after one year
1,000,000
1,500,000
The long term loans are secured by fixed and floating charges over all assets plus 10% personal guarantees.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
-
9,999
1,306
-
2024
Movements in the year:
£
Liability at 1 July 2023
9,999
Credit to profit or loss
(11,305)
Asset at 30 June 2024
(1,306)
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 27 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
280,653
124,897
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
The company has one class of ordinary shares which carry full rights with regards to voting participation and dividends.
20
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
2,023,004
1,260,170
Profit for the year
1,018,150
762,834
At the end of the year
3,041,154
2,023,004
The company's reserves above represent cumulative profits or losses net of dividends paid and other adjustments.
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 28 -
21
Related party transactions
The company has shareholders and directors in common with the following companies and traded on an arm's length basis:
Lime Management Limited
Goods and services sold £69,408 (2023 - £262,082)
Goods and services purchased £6,458,071 (2023 - £4,215,631).
Balance payable at the year end £0 (2023 - £7,369)
Included in accruals are costs payable of £16,064 (2023 - £214,915)
In addition there is a short term loan due from Lime Management Limited. The balance of £135,000 is interest free and repayable on demand.
Calrom Management Limited
Goods and services sold £21,138 (2023 - £293)
Goods and services purchased £2,249,421 (2023 - £927,094).
Balance payable at the year end £0 (2023 - £0)
Included in accruals are costs payable of £97,631 (2023 - £766,804)
Calrom Pakistan
Goods and services sold £0 (2023 - £0)
Goods and services purchased £190,505 (2023 - £58,855).
Balance payable at the year end £0 (2023 - £0)
Included in accruals are costs payable of £26,565 (2023 - £10,494)
Calrom Limited
Goods and services sold £42,431 (2023 - £83,587)
Goods and services purchased £672,401 (2023 - £394,233).
Balance receivable at the year end £0 (2023 - £26,941)
Included in accruals are costs payable of £143,550 (2023 - £51,190)
TIG South Africa
Goods and services sold £158 (2023 - £195,384)
Goods and services purchased £1,540,592 (2023 - £882,155)
Balance receivable at the year end £188,398 (2023 - £247,838)
Included in accruals are costs payable of £6,309 (2023 - £0)
TIG Barbados
Goods and services sold £50,714 (2023 - £0)
Goods and services purchased £257,888 (2023 - £0)
Balance receivable at the year end £85,422 (2023 - £0)
Included in accruals are costs payable of £0 (2023 - £0)
TIG Ireland
Goods and services sold £3,666 (2023 - £0)
Goods and services purchased £4,903 (2023 - £0)
Balance receivable at the year end £72,824 (2023 - £0)
Included in accruals are costs payable of £0 (2023 - £0)
Loans to related parties
In addition to the above the company issued loans of £383,000 to group undertakings and £117,000 to related parties and the loans are interest free and repayable on demand.
22
Ultimate controlling party
There is no ultimate controlling party.
Aviate Management Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 29 -
23
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
16,764,635
7,902,328
24,666,963
Borrowings excluding overdrafts
(2,000,000)
500,000
(1,500,000)
14,764,635
8,402,328
23,166,963
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,018,150
762,834
Adjustments for:
Taxation charged
344,838
188,438
Finance costs
165,768
146,062
Investment income
(948,658)
(336,091)
Depreciation and impairment of tangible fixed assets
5,883
57,179
Movements in working capital:
Decrease/(increase) in debtors
1,286,056
(87,900)
Increase in creditors
4,645,797
2,597,775
Increase in deferred income
1,910,610
1,663,902
Cash generated from operations
8,428,444
4,992,199
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