REGISTERED NUMBER: 01371670 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

for

Starspeed Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Profit or Loss

10

Statement of Profit or Loss and Other Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Statement of Cash Flows

15

Notes to the Financial Statements

16

DIRECTORS:

S Mitchell

P Hansen

N Luycx

REGISTERED OFFICE:

West Entrance

Fairoaks Airport

Chobham

Surrey

GU24 8HU

REGISTERED NUMBER:

01371670 (England and Wales)

SENIOR STATUTORY AUDITOR:

Aidan Smyth

AUDITORS:

Peter Hodgson & Co. Ltd. (Statutory Auditor)

Chartered Accountants

Shadwell House

65 Lower Green Road

Tunbridge Wells

Kent

TN4 8TW

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

Starspeed has two key areas of business, the management of helicopters for private operations and the commercial air transport operations. The management area of the business remains the largest proportion of the company in terms of both turnover and the number of staff directly employed; but the scheduled air transport service out of Penzance coupled with the commercial helicopter expedition cruise ship project for Quark has grown in size and significance over the last two years.

The Penzance Service has shown very positive improvements in KPIs over the last 12 months, with higher passenger numbers, higher load factors and lower sub-charter costs. The ticket prices have been reviewed and increased to better reflect the costs of service, and Starspeed is making investments in its own MRO capability (Maintenance, Repair and Overhaul) that will further reduce the overall costs of the operation. The investments in MRO will also be used to increase the types of service the company can offer its management clients, and this will create an additional revenue stream to that area of the business.

On the management side of the business, there have been significant contract renegotiations with clients that will deliver higher returns and profitability in 2025 and onwards.

The company would have turned a profit in 2024 had the renegotiation of key agreements been finalized as originally scheduled in the autumn, but the directors are highly confident that a return to profitability shall be achieved in 2025.

The directors are confident that the company will return to profits in 2025 and future years.

PRINCIPAL RISKS AND UNCERTAINTIES

As an aircraft operator, the largest risks are relating to the incalculable consequences of a very serious incident or accident; however, as a highly regulated entity, the majority of company systems and processes are designed and maintained to minimise the possibility of such an outcome.

The consequences of Brexit or EU Exit are still feeding challenges and hurdles into the industry; with access to materials and parts becoming more restricted and costly to obtain, and with a significant reduction in available skilled workers. The aviation industry has been getting older year on year since 2000, but this trend is now accelerating and there are very real shortages in qualified and licensed professionals required to meet all the various regulatory requirements.

FINANCIAL REVIEW

The turnover for the year gross of expenses recharged to aircraft owners amounted to £22,779,359.

The turnover decreased 8.5% compared to 2023, this is mainly a product of lower owners costs being recharged and the scaling back of Project Blue..

Gross margin amounted to 8.1% compared to 4.2% in the previous year. The increase is mainly attributed to the return and stabilization of the revenue from the scheduled Penzance operations.

The loss for the year before tax amounted to £312,935 after group management fees of £717,652.

The company's net assets amounted to £2,336,846 at the year end.

No dividend was declared for the year.

FUTURE PLANS

The market conditions for Penzance Helicopter Service indicate that even with the necessary price increases made for 2025, there is still a capacity to increase the number of passengers flown by 60-70%. Starspeed is making plans to increase the number of aircraft available to meet this demand, with some of the capacity increasing during the 2025 summer season.

The diversification of services achieved through expansion of the MRO facility will improve services offered to existing clients, and strengthen our capability to attract new business in our key market sector of helicopter support for super yachts.

ON BEHALF OF THE BOARD:

S Mitchell - Director

23 May 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the supply of management and consultancy services in the use of helicopters, combined with the business of aircraft and helicopter charters.

DIVIDENDS

The company did not provide for a dividend in the year.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

S Mitchell

P Hansen

Other changes in directors holding office are as follows:

S Jones - resigned 31 May 2024

M Casiraghi - appointed 5 February 2024 - resigned 6 November 2024

P Casiraghi - appointed 5 February 2024 - resigned 6 November 2024

N Luycx - appointed 31 May 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 UK-adopted international accounting standards. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

S Mitchell - Director

23 May 2025

Opinion

We have audited the financial statements of Starspeed Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Profit or Loss, the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the UK.

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the year then ended;

-	have been properly prepared in accordance with IFRSs as adopted by the UK; 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 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

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

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The objectives of our audit in respect of fraud are to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

- we obtained an understanding of the legal and regulatory requirements applicable to the company.

- we obtained an understanding of how the company complies with these requirements through discussion with management and those charged with governance.

- we assessed the risk of material misstatement in the financial statements through discussions with management and those charged with governance.

- we enquired of management and those charged with governance of any known instances of non compliance with legal and regulatory requirements.

- based on this understanding, we designed specific and appropriate audit procedures to identify instances of non compliance to include discussions and obtaining additional corroborative evidence.

As part of the audit in accordance with ISAs (UK) we exercised professional judgement and scepticism throughout the audit. In addition, we also:

- identified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error, designed and performed audit procedures consistent with those risks and obtained sufficient and relevant audit evidence to support and provide a basis for our opinion. The risk of misstatement from fraud is invariably higher than one resulting from error as fraud may involve collusion or intentional omissions and misrepresentations to override the systems of internal control.

- obtained an understanding of the internal controls relevant to the audit and designed

audit procedures and tests that were appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal controls.

- evaluated the appropriateness of the accounting policies used and the reasonableness of any accounting estimates and disclosures used and made by the directors.

- assessed the appropriateness of the directors' use of the going concern basis of accounting and based on the audit evidence obtained, whether any material uncertainty existed that may have cast doubt on the company's ability to continue as a going concern.

- evaluated the overall presentation, structure and content of the financial statements including disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieved a fair presentation of the results for the period and the financial standing of the company at the year end.

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 Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.

Aidan Smyth (Senior Statutory Auditor)

for and on behalf of Peter Hodgson & Co. Ltd. (Statutory Auditor)

Chartered Accountants

Shadwell House

65 Lower Green Road

Tunbridge Wells

Kent

TN4 8TW

23 May 2025

CONTINUING OPERATIONS

Revenue

3

22,779,359

24,894,692

Direct costs

(20,913,669

)

(23,891,569

)

GROSS PROFIT

1,865,690

1,003,123

Other operating income

535,312

109,616

Administrative expenses

(2,880,155

)

(2,890,456

)

Finance income

5

166,218

160,020

LOSS BEFORE TAX EXPENSE

6

(312,935

)

(1,617,697

)

Tax expense

7

47,312

(12,346

)

LOSS FOR THE YEAR

(265,623

)

(1,630,043

)

LOSS FOR THE YEAR

(265,623

)

(1,630,043

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE LOSS FOR THE YEAR

(265,623

)

(1,630,043

)

ASSETS

NON-CURRENT ASSETS

Owned

FIXED ASSETS

8

1,591,316

2,173,382

Right-of-use

Trade and other receivables

9

5,300,580

5,173,057

6,891,896

7,346,439

CURRENT ASSETS

Trade and other receivables

9

4,352,238

3,307,117

Cash and cash equivalents

10

641,835

673,566

4,994,073

3,980,683

TOTAL ASSETS

11,885,969

11,327,122

EQUITY

SHAREHOLDERS' EQUITY

Called up share capital

11

100

100

Retained earnings

12

2,336,746

2,602,369

TOTAL EQUITY

2,336,846

2,602,469

LIABILITIES

NON-CURRENT LIABILITIES

Financial obligations -

Lease liabilities

14, 15

1,135,368

1,629,838

Deferred tax

16

36,115

83,427

1,171,483

1,713,265

CURRENT LIABILITIES

Trade and other payables

13

7,883,167

6,542,621

Financial obligations -

Lease liabilities

14, 15

494,473

468,767

8,377,640

7,011,388

TOTAL LIABILITIES

9,549,123

8,724,653

TOTAL EQUITY AND LIABILITIES

11,885,969

11,327,122

The financial statements were approved by the Board of Directors and authorised for issue on 23 May 2025 and were signed on its behalf by:

S Mitchell - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

4,232,412

4,232,512

Changes in equity

Total comprehensive loss

-

(1,630,043

)

(1,630,043

)

Balance at 31 December 2023

100

2,602,369

2,602,469

Changes in equity

Total comprehensive loss

-

(265,623

)

(265,623

)

Balance at 31 December 2024

100

2,336,746

2,336,846

Cash flows from operating activities

Cash generated from operations

1

347,792

(970,899

)

Tax paid

-

(1,330

)

Net cash from operating activities

347,792

(972,229

)

Cash flows from investing activities

Purchase of tangible fixed assets

(19,454

)

(39,188

)

Interest received

166,218

160,020

Net cash from investing activities

146,764

120,832

Cash flows from financing activities

Payment of lease liabilities

(468,764

)

(291,727

)

Amount introduced by directors

70,000

-

Loans advanced to related parties

(106,275

)

-

Loans advanced to group companies

(21,248

)

(185,683

)

Loans repaid by related parties

-

9,220

Equity dividends paid

-

(43,668

)

Net cash from financing activities

(526,287

)

(511,858

)

Decrease in cash and cash equivalents

(31,731

)

(1,363,255

)

Cash and cash equivalents at beginning of year

2

673,566

2,036,821

Cash and cash equivalents at end of year

2

641,835

673,566

1.	RECONCILIATION OF LOSS BEFORE TAX EXPENSE TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Loss before tax expense

(312,935

)

(1,617,697

)

Depreciation charges

601,520

541,634

IFRS 16 depreciation adjustments

(547,712

)

(481,541

)

Finance income

(166,218

)

(160,020

)

(425,345

)

(1,717,624

)

(Increase)/decrease in trade and other receivables

(1,045,121

)

1,705,241

Increase/(decrease) in trade and other payables

1,818,258

(958,516

)

Cash generated from operations

347,792

(970,899

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

641,835

673,566

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

673,566

2,036,821

1.	STATUTORY INFORMATION

Starspeed Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with International Financial Reporting Standards and IFRIC interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

These financial statements are presented in £ sterling.

Critical accounting judgements and key sources of estimation uncertainty

There are no critical accounting judgements or key sources of estimation uncertainty pertaining to these financial statements or matters that need to be brought to the attention of users of these accounts which have not already been disclosed.

Changes in accounting policies

There have been no changes to the company's accounting policies in the current or previous year.

Revenue recognition

All income in the current and previous accounting period was from carrying out aircraft charter, pilotage, aircraft management and maintenance activities for clients under contract.

The company regards all contracts as point in time contracts under IFRS 15 and income is recognised in the accounts on that basis as required by the standard.

Revenue is measured at fair value or receivable and represents the consideration received or receivable and represents the amounts receivable for goods and services provided in the normal course of the company's business, net of discounts, rebates and sales related taxes.

Revenue is recognised when the goods are delivered and the significant risks and rewards of ownership have passed to the customer.

Revenue is recognised with reference to the stage of completion provided that the amount of revenue and its related costs can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the company.

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

Cash and cash equivalents

Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value.

In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position.

Right of use assets, plant and equipment

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Right of use assets

-

over the period of the lease

Improvements to property

-

over the period of the lease

Plant and machinery

-

4 to 20 years

Computer equipment

-

25% on reducing balance

Right of use assets, plant and equipment are tangible assets that:

- are held for use in the production or supply of goods or services, for rental to others for administrative purposes; and

- are expected to be used for more than one period.

Items of property, plant and equipment are initially recognised at cost. Costs include all costs incurred to bring the asset to the condition necessary for it to be capable of operating in the manner intended by management.

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.

Leases where the company has right of use and control of identifiable assets are treated as fixed assets and the obligation to pay the rentals under the lease are treated as leases payable as required by IFRS 16.

Rentals paid under leases where the company does not have control over the use of the underlying asset are charged through the income statement.

Financial instruments

Initial Measurement

Financial instruments are initially measured at the transaction price (this includes transaction cost except in the initial measurement of financial assets and liabilities that will be measured at fair value through profit or loss). If however the arrangement constitutes a financing transaction it is then measured at the present value of the future payments, discounted at a market related interest rate.

Trade and other receivables

Most sales are made on the basis of normal credit terms, and the receivables do not bear interest. Where credit is extended beyond normal credit terms, receivables are measured at amortised cost using the effective interest method. At the end of each reporting period, the carrying amounts of trade and other receivables are reviewed to determine whether there is any objective evidence that the amounts are not recoverable. If so, an impairment loss is recognised immediately in profit or loss.

Trade payables

Trade payables are obligations on the basis of normal credit terms and do not bear interest. Trade payables denominated in a foreign currency are translated into (currency) using the exchange rate at the reporting date. Foreign exchange gains or losses are included in other income or other expenses.

Bank loans and overdrafts

Interest expense is recognised on the basis of the effective interest method and is included in finance costs.

Taxation

Current tax assets and liabilities

Current tax for current and prior year is, to the extent unpaid, recognised as a liability. If the amount already paid in respect of current and prior year exceeds the amount due for those periods, the excess is recognised as an asset, limited to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

Deferred Tax

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases (known as temporary differences). Deferred tax liabilities are recognised for all temporary differences that are expected to increase taxable profit in the future.

Deferred tax assets are recognised for all temporary differences that are expected to reduce taxable profit in the future, and any unused tax losses or unused tax credits, limited to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

The net carrying amount of deferred tax assets is reviewed at each reporting date and is adjusted to reflect the current assessment of future taxable profits. Any adjustments are recognised in profit or loss. Deferred tax is calculated at the tax rates that are expected to apply to the taxable profit (tax loss) of the periods in which it expects the deferred tax asset to be realised or the deferred tax liability to be settled, on the basis of tax rates that have been enacted or substantively enacted by the end of the reporting year.

Tax Expense

Tax expense represents the sum of the tax currently payable and deferred tax movement for the current year.

The tax currently payable is based on taxable profit for the year.

Impairment of assets

At each reporting date, the company assesses whether there is any indication that any asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any affected asset (or group of related assets) is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset (or group of related assets) is

increased to the revised estimate of its recoverable amount but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset (group of related assets) in prior years.

A reversal of an impairment loss is recognised immediately in profit or loss, this does not apply to impairment losses allocated to goodwill, the reversal of which is prohibited by the standard.

Foreign currencies

Transactions in foreign currencies are translated to the functional currency of the company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the reporting period.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.

Foreign currency differences arising in retranslation are recognised in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

Employee benefit costs

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors continue adopt the going concern basis of accounting in preparing the financial statements.

Functional and presentational currency

The functional currencies of the company are £ Stg, € Euro and $ USD.

The currency for accounts presentation purposes is £ Stg.

Provisions and contingencies

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event; it is probable that the company will be required to transfer economic benefits in settlement; and the amount of the obligation can be estimated reliably.

Provisions are measured at the present value of the amount expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks to a specific obligation. The increase in the provision due to the passage of time is recognised as interest expense.

Provisions are not recognised for future operating losses.

Contingent assets and contingent liabilities are not recognised.

3.

REVENUE

Segmental reporting

The company's turnover derived from the following market segments:

Aircraft charter - £323,579 (31-12-2023 - £285,276)

Scheduled operations - £4,327,031 (31-12-2023 - £4,047,449)

Pilotage - £8,682,840 (31-12-2023 - £9,816.883)

Contracts - £1,576,319 (31-12-2023 - £1,528,369)

Recharges and other - £7,869,590 (31-12-2023- £9,216,715)

Total - £22,779,359 (31-12-2023 - £24,894,692)

The company's turnover in respect of aircraft charter, pilotage, aircraft management and maintenance arose in the following geographic markets:

UK - 94% (31-12-2023 - 77%)

Europe - 1% (31-12-2023 - 9%)

US - 4% (31-12-2023 - 8%)

Rest of World - 1% (31-12-2023 - 6%)

Total - 100.00%

Revenue from contracts with customers

All income in the current and previous accounting period was from carrying out aircraft charter, pilotage, aircraft management and maintenance activities for clients under contract.

The company regards all contracts as point in time contracts under IFRS 15 and income is recognised in the accounts on that basis as required by the standard.

Contract balances

Contract assets comprises trade receivables which amounted to:

31-12-2023 - £2,098,378

31-12-2024 - £2,577,231

Contract liabilities comprises trade payables which amounted to:

31-12-2023 - £2,947,250

31-12-2024 - £3,857,117

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

7,595,844

8,050,195

Social security costs

915,032

1,087,791

Other pension costs

307,846

369,758

8,818,722

9,507,744

The average number of employees during the year was as follows:

2024

2023

Directors

1

1

Operations and administration

94

103

95

104

The company paid 5% employer pension contributions for all eligible employees into the company Workplace Pension Scheme.

The scheme is a defined contribution scheme and is managed by Legal & General Assurance Society Limited.

Pension contributions made on behalf of one director in the year amounted to £6,495 (2023 : £6,296).

2024

2023

£

£

Directors' remuneration

139,926

135,960

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

5.	NET FINANCE INCOME

2024

2023

£

£

Finance income:

Bank interest receivable

10,818

9,321

Interest on group loan

155,400

150,699

166,218

160,020

6.	LOSS BEFORE TAX EXPENSE

The loss before tax expense is stated after charging:

2024

2023

£

£

Depreciation - owned assets

601,520

541,635

Auditors' remuneration

6,645

6,100

Foreign exchange differences

73,692

50,961

Direct costs and recharges

20,913,669

23,891,566

7.	TAX EXPENSE

Analysis of tax (income)/expense

2024

2023

£

£

Current tax:

Corporation tax

-

80

Deferred tax

(47,312

)

12,266

Total tax (income)/expense in statement of profit or loss

(47,312

)

12,346

Factors affecting the tax expense

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Loss before income tax

(312,935

)

(1,617,697

)

Loss multiplied by the standard rate of corporation tax in the UK of 19% (2023 - 19%)

(59,458

)

(307,362

)

Effects of:

Tax losses carried forward

37,851

303,344

Depreciation

114,858

102,910

Right-of-use assets

(136,867

)

(58,264

)

Capital allowances

(3,696

)

(28,282

)

Tax (income)/expense

(47,312

)

12,346