Company Registration No. SC492802 (Scotland)
Osprey Aviation Services (UK) Limited
Annual report and
group financial statements
for the year ended 30 September 2024
Osprey Aviation Services (UK) Limited
Company information
Directors
Jerry Francis
Shaun Strain
Robin Powell
John Willox
Secretary
Blackwood Partners LLP
Company number
SC492802
Registered office
Blackwood House
Union Grove Lane
Aberdeen
AB10 6XU
Independent auditor
Saffery LLP
Torridon House
Beechwood Park
Inverness
IV2 3BW
Business address
The Heliport
Dalcross Industrial Estate
Inverness
IV2 7XB
Osprey Aviation Services (UK) Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 34
Osprey Aviation Services (UK) Limited
Strategic report
For the year ended 30 September 2024
1
The directors present the strategic report for the year ended 30 September 2024. This strategic report gives an analysis of the results of the group rather than the individual company.
Fair review of the business
The results for the year and the financial position of the group are as shown in the annexed financial statements.
Notwithstanding the macro-economic challenges encountered in the financial year (FY24), increased operations in support of the energy renewables sector and environmental projects, along with multiple contractual commitments relating to UK and Ireland maritime, rail and electricity distribution network infrastructure services (survey, inspection and emergency support), have contributed significantly to the continued growth and strong financial performance.
Within the financial year, we continued to deliver our services across existing critical national infrastructure through our long-term contractual relationships, as well as supporting existing and new customers in the transition to renewable energy and sustainable infrastructure. The growth across these sectors was aligned with the group strategy and the business has invested significantly within the commercial function this financial year to support the strategic focus in the growing energy renewables and infrastructure services sectors where we have a proven track record, and an increasing customer base.
Principal risks and uncertainties
Principal risks and uncertainties include how the group continues to operate and grow in line with the business strategy in an increasingly competitive, cost focussed market and one which is subject to substantial regulation and significant barriers to entry.
The success of the business is dependent on good relationships with key stakeholders and the company benefits from several long-standing and trusted relationships with its suppliers and customers. All these relationships are the focus of significant management attention at all levels of the organisation to ensure customer satisfaction, maximise opportunities and minimise any adverse impact of the financial performance of the group.
The company has a strong reputation for being a trusted and reliable partner and looks to deliver upon customer expectations utilising our ISO accredited and certified integrated quality and environmental management systems. These systems are further underpinned by a competent and capable workforce, with extensive industry experience and tenure with the company.
Given the nature of our business activities, we consider the safety of our passengers and personnel to be of the upmost priority for the company and therefore we continue to operate a robust safety management system, which is continually reviewed, which ensures all the group's processes, procedures and practices are conducted to the highest possible standard and ensuring that all the Civil Aviation Authority (CAA) regulations are complied with. The company has had a number of regular CAA inspections during the year and continue to trade with all the relevant CAA licenses in place.
Key performance indicators
The group monitors itself against a number of performance indicators. The key measures are as follows:
2024
2023
% change
Turnover
£17.6m
£16.7m
5%
Gross profit
£11.1m
£10.7m
5%
Gross margin
63%
64%
-
EBITDA
£4.4m
£4.4m
-
Operating profit
£2.7m
£2.5m
8%
Osprey Aviation Services (UK) Limited
Strategic report (continued)
For the year ended 30 September 2024
2
Going concern
The group has considerable financial resources together with long term contracts with several customers and suppliers across different industries. Consequently, the directors believe that the group is well placed to manage its business risks successfully despite the current uncertain economic outlook.
The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future, and therefore, they continue to adopt the going concern basis in preparing the annual financial statements.
Shaun Strain
Director
Date:20 December 2024
Osprey Aviation Services (UK) Limited
Directors' report
For the year ended 30 September 2024
3
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of Osprey Aviation Services (UK) Limited is that of an investment holding company of PLM Dollar Group Limited (PDG), with PDG being the principal trading company of the group.
PDG are the UK and Ireland’s leading provider of aerial survey, inspection and lifting solutions, working across the infrastructure and environmental sectors, from utilities, rail and telecommunications, to renewables, marine, defence and national parks.
With our extensive fleet of 16 helicopters and advanced portfolio of high-performance gyro stabilised aerial survey and inspection camera systems, PDG retain a range of Contracts and Framework Agreements, providing aerial solutions to a wide range of blue-chip companies across multi sectors.
Our teams acquire a significant amount of critical survey and inspection data to improve the performance and longevity of our customers infrastructure, while delivering complex lifting solutions in support of existing and new build projects.
Collaborating with key customers and partners, PDG are also supporting the research, development and integration of advanced image/sensor suites and, in parallel, commissioning the development of bespoke data processing programmes that will exploit this technologies capability in support of infrastructure management.
With an increasing focus on the energy renewables sector and environmental programmes, along with critical national infrastructure asset management support contracts, PDG’s pedigree and specialist aerial capability places the company in an ideal position to support continuing growth and maintaining an influential presence in these market sectors.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Jerry Francis
Shaun Strain
Robin Powell
John Willox
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Future developments
The directors will continue to support the operational teams in the development and delivery of innovative, efficient and effective technical and performance delivery solutions for our customers across the renewables, environmental, infrastructure management, and defence sectors.
In addition to the recent investments within the business, the directors will explore further investment opportunities which complement the core activities of the company and provide additional services to our customers.
Financial risk management policy
The group has exchange rate exposure on the Euro and US dollar, principally arising through the purchase of aircraft parts in these currencies. The group manages these risks by maintaining bank accounts in these currencies, using natural hedging arrangements, and on occasion putting in place forward exchange contracts. At the balance sheet date, the group had no forward exchange contracts.
Osprey Aviation Services (UK) Limited
Directors' report (continued)
For the year ended 30 September 2024
4
Liquidity and cashflow risk
The group has in place a range of short-term and long-term financing facilities to assist in managing its cash flow. The group ensures it has sufficient cash reserves to meet its obligations as they become due.
Auditor
In accordance with section 485 of the Companies Act 2006, a resolution proposing that Saffery LLP be re-appointed will be put forward at a General Meeting.
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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
Shaun Strain
Director
20 December 2024
Osprey Aviation Services (UK) Limited
Directors' responsibilities statement
For the year ended 30 September 2024
5
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Accounting Standards and applicable law (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102"). 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 group and company, and of the profit or loss of the group 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 ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Osprey Aviation Services (UK) Limited
Independent auditor's report
To the members of Osprey Aviation Services (UK) Limited
6
Opinion
We have audited the financial statements of Osprey Aviation Services (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the Group statement of comprehensive income, the Group balance sheet, the Company balance sheet, the Group statement of changes in equity, the Company statement of changes in equity, the Group statement of cash flows and Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 group's and the parent company's affairs as at 30 September 2024 and of the group's 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 group and parent 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 group's and parent 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.
Osprey Aviation Services (UK) Limited
Independent auditor's report (continued)
To the members of Osprey Aviation Services (UK) Limited
7
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 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 group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement, set out on page 4, 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 group's and the parent 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 group or the parent 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.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Osprey Aviation Services (UK) Limited
Independent auditor's report (continued)
To the members of Osprey Aviation Services (UK) Limited
8
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax Legislation.
Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgments made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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 parent 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 parent company's members those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Eunice McAdam (Senior Statutory Auditor)
For and on behalf of Saffery LLP
20 December 2024
Statutory Auditors
Torridon House
Beechwood Park
Inverness
IV2 3BW
Osprey Aviation Services (UK) Limited
Group statement of comprehensive income
For the year ended 30 September 2024
9
2024
2023
as restated
Notes
£
£
Turnover
3
17,591,397
16,745,407
Cost of sales
(6,443,621)
(6,081,521)
Gross profit
11,147,776
10,663,886
Administrative expenses
(8,494,683)
(8,218,818)
Other operating income
26,435
25,710
Operating profit
4
2,679,528
2,470,778
Interest receivable and similar income
1,447
176
Interest payable and similar expenses
8
(997,815)
(1,078,921)
Profit before taxation
1,683,160
1,392,033
Tax on profit
9
(473,271)
(328,656)
Profit for the financial year
1,209,889
1,063,377
Other comprehensive income
Currency translation loss taken to other reserves
(68,610)
(13,172)
Total comprehensive income for the year
1,141,279
1,050,205
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
Osprey Aviation Services (UK) Limited
Group balance sheet
As at 30 September 2024
10
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
57,249
221,195
Other intangible assets
10
1,267,105
1,444,488
Total intangible assets
1,324,354
1,665,683
Tangible assets
11
10,045,613
11,394,157
11,369,967
13,059,840
Current assets
Stocks
15
1,909,925
2,186,953
Debtors
16
2,581,315
2,797,282
Cash at bank and in hand
2,080,702
1,838,633
6,571,942
6,822,868
Creditors: amounts falling due within one year
17
(4,424,905)
(4,001,765)
Net current assets
2,147,037
2,821,103
Total assets less current liabilities
13,517,004
15,880,943
Creditors: amounts falling due after more than one year
18
(8,249,118)
(11,516,476)
Provisions for liabilities
Deferred tax liability
20
1,134,086
1,371,946
(1,134,086)
(1,371,946)
Net assets
4,133,800
2,992,521
Capital and reserves
Called up share capital
22
45,651
45,651
Share premium account
23
434,867
434,867
Other reserves
23
97,332
165,942
Profit and loss reserves
23
3,555,950
2,346,061
Total equity
4,133,800
2,992,521
The financial statements were approved by the board of directors and authorised for issue on 20 December 2024 and are signed on its behalf by:
20 December 2024
Shaun Strain
Director
Company registration number SC492802 (Scotland)
Osprey Aviation Services (UK) Limited
Company balance sheet
As at 30 September 2024
30 September 2024
11
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
18,422,000
18,422,000
Current assets
Debtors
16
75,000
75,000
Cash at bank and in hand
272
652
75,272
75,652
Creditors: amounts falling due within one year
17
(9,486,439)
(6,365,652)
Net current liabilities
(9,411,167)
(6,290,000)
Total assets less current liabilities
9,010,833
12,132,000
Creditors: amounts falling due after more than one year
18
(8,249,118)
(11,516,476)
Net assets
761,715
615,524
Capital and reserves
Called up share capital
22
45,651
45,651
Share premium account
23
434,867
434,867
Profit and loss reserves
23
281,197
135,006
Total equity
761,715
615,524
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £146,191 (2023 - £982,828 loss).
The financial statements were approved by the board of directors and authorised for issue on 20 December 2024 and are signed on its behalf by:
20 December 2024
Shaun Strain
Director
Company registration number SC492802 (Scotland)
Osprey Aviation Services (UK) Limited
Group statement of changes in equity
For the year ended 30 September 2024
12
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 October 2022
45,651
434,867
179,114
1,299,853
1,959,485
Year ended 30 September 2023:
Profit for the year
-
-
-
1,063,377
1,063,377
Other comprehensive income:
Currency translation differences
-
-
(13,172)
-
(13,172)
Total comprehensive income for the year
-
-
(13,172)
1,063,377
1,050,205
Own shares acquired (preference shares)
-
-
(17,169)
(17,169)
Balance at 30 September 2023
45,651
434,867
165,942
2,346,061
2,992,521
Year ended 30 September 2024:
Profit for the year
-
-
-
1,209,889
1,209,889
Other comprehensive income:
Currency translation differences
-
-
(68,610)
-
(68,610)
Total comprehensive income for the year
-
-
(68,610)
1,209,889
1,141,279
Balance at 30 September 2024
45,651
434,867
97,332
3,555,950
4,133,800
Osprey Aviation Services (UK) Limited
Company statement of changes in equity
For the year ended 30 September 2024
13
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
45,651
434,867
1,135,003
1,615,521
Year ended 30 September 2023:
Loss and total comprehensive income for the year
-
-
(982,828)
(982,828)
Own shares acquired (preference shares)
-
-
(17,169)
(17,169)
Balance at 30 September 2023
45,651
434,867
135,006
615,524
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
-
146,191
146,191
Balance at 30 September 2024
45,651
434,867
281,197
761,715
Osprey Aviation Services (UK) Limited
Group statement of cash flows
For the year ended 30 September 2024
14
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
3,954,951
3,533,114
Income taxes paid
(655,036)
(370,539)
Net cash inflow from operating activities
3,299,915
3,162,575
Investing activities
Purchase of tangible fixed assets
(96,266)
(197,623)
Proceeds from disposal of tangible fixed assets
87,988
37,139
Interest received
1,447
176
Net cash used in investing activities
(6,831)
(160,308)
Financing activities
Purchase of treasury shares
(17,169)
Repayment of bank loans
(2,487,741)
(1,531,785)
Interest paid
(563,274)
(1,495,932)
Net cash used in financing activities
(3,051,015)
(3,044,886)
Net increase/(decrease) in cash and cash equivalents
242,069
(42,619)
Cash and cash equivalents at beginning of year
1,838,633
1,881,252
Cash and cash equivalents at end of year
2,080,702
1,838,633
Osprey Aviation Services (UK) Limited
Notes to the financial statements
For the year ended 30 September 2024
15
1
Accounting policies
Company information
Osprey Aviation Services (UK) Limited (“the company”) is a private company limited by shares incorporated in Scotland. The registered office is Blackwood House, Union Grove Lane, Aberdeen, AB10 6XU.
The group consists of Osprey Aviation Services (UK) Limited and all of its subsidiaries.
1.1
Basis of preparation
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 £.
The financial statements have been prepared under the historical cost convention except that certain financial instruments are stated at fair value as noted separately. The principal accounting policies adopted are set out below and have been applied consistently to all periods presented.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available group financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the group financial statements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Disclosures relating to certain financial instruments;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
1.2
Basis of consolidation
In the group company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.
The consolidated group financial statements incorporate those of Osprey Aviation Services (UK) Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
16
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Going concern
The group has considerable financial resources together with long term agreements with a number of customers and suppliers across different geographical areas and industries. As a consequence the directors believe that the company is well placed to manage its business risks successfully.
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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets - goodwill
Goodwill arising on the acquisition of subsidiary undertakings represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. The group has identified one single cash-generating unit. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
Intangible fixed assets other than goodwill
Other intangible assets that are acquired by the company are stated at cost less accumulated amortisation and less accumulated impairment losses.
The cost of intangible assets acquired in a business combination are capitalised separately from goodwill if the fair value can be measured reliably at the acquisition date.
Amortisation is charged to the profit and loss account on a straight line basis over the estimated useful lives of intangible assets. Intangible assets are amortised from the date they are available for use. The estimated useful lives are as follows:
Customer relations
15 years
Brands
20 years
The company reviews the amortisation period and method when events and circumstances indicate that the useful life may have changed since the last reporting date.
Other intangible assets are tested for impairment in accordance with FRS 102 Section 27 Impairment of assets when there is an indication that an intangible asset may be impaired.
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
17
1.7
Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.
Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets.
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:
Buildings
2% and 11% per annum straight line basis
Hangar & role equipment
10% per annum straight line basis
Helicopters & aeroplanes
5% and 10% per annum straight line basis
Office equipment
15% per annum reducing balance basis
Motor vehicles
25% per annum reducing balance basis
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.
Leased assets are depreciated over the shorter of the lease term and their useful lives.
Land is not depreciated.
Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits.
1.8
Impairment of fixed assets
At each reporting period end date, the group 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).
1.9
For engines and airframes maintained under power and support by the hour contracts, maintenance costs are charged to the profit and loss account as incurred. Where such contracts require prepayment at commencement, these costs are prepaid and amortised in line with the related helicopter's useful economic life.
1.10
Stocks
Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolescence.
1.11
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.
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
18
1.12
Financial instruments
Financial assets and liabilities are recognised when the company becomes party to the contractual provisions of the instrument.
Debtors
Debtors do not carry interest and are stated at their nominal value less any impairment losses.
Investment in subsidiaries
Investments in subsidiaries are carried at cost less impairment.
Trade creditors
Trade creditors are not interest bearing and are stated at their nominal value.
1.13
Interest-bearing borrowings
Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method.
1.14
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Helicopter services are generally charged on an hourly rate as the related services are performed. Cost reimbursements from clients are recorded as revenue with the related costs recorded as expenses.
Where the outcome of a long-term contract can be measured reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting date.
1.15
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 group’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.
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
19
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense in the period during which services are rendered by employees.
1.18
Expenses
Operating lease
Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in the profit and loss account over the term of the lease as an integral part of the total lease expense.
Interest receivable and interest payable
Interest payable and similar charges include interest payable, finance charges on shares classified as liabilities and finance leases recognised in the profit or loss account using the effective interest method, unwinding of the discount on provisions, and net foreign exchange losses that are recognised in the profit and loss account.
Other interest receivable and similar income include interest receivable on funds invested and net foreign exchange gains.
Interest income and interest payable are recognised in the profit and loss account as they accrue using the effective interest method. Dividend income is recognised in the profit and loss account on the date the company's right to receive payments is established. Foreign currency gains and losses are reported on a net basis.
1.19
Foreign exchange
Transactions in foreign currencies are translated to the group's functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using that exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account.
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
20
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated to the group's presentational currency, Sterling, at foreign exchange rates ruling at the balance sheet date. The revenues and expenses of foreign operations are translated at an average rate for the year where this rate approximates the foreign exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on retranslation are recognised in other comprehensive income.
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the group’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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:
Fixed assets and prepaid maintenance expense
Management is required to assess the useful economic lives and residual values of fixed assets and prepaid maintenance such that these assets are expensed on a systematic basis over the period of use, and amounts remaining are recoverable. Estimates of useful economic life are based on management's experience by comparison to similar aircraft in the industry and specific circumstances related to each asset. However, the actual life of a helicopter, or usage of the prepaid maintenance asset, may be different and events may occur, such as accidental damage, withdrawal of supplier support or technical issues, which cannot be predicted. Residual values of fixed assets recoverable are difficult to estimate given the long lives of these assets, the uncertainty as to future economic conditions and the future price of materials.
Intangibles recognised on business combinations
Management is required to assess the fair value of intangibles such as customer relationships and brands on acquisition. This process is highly judgemental and involves assessing the income streams expected to be generated in the future. Actual results may differ from expectations or events may occur that cannot be predicted. Management review intangibles for impairment where triggers are considered to exist and assess the useful economic lives on an annual basis.
Transaction costs
Management is required to assess the carrying value of transaction costs netted from the value of debt for any impairment. There is a degree of judgement around the value of deal costs capitalised, the useful life of the costs and amortisation charge and any impairment charge.
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
21
3
Turnover and other revenue
2024
2023
£
£
as restated
Turnover analysed by geographical market
United Kingdom
16,226,706
15,019,618
Republic of Ireland
1,436,542
1,725,789
17,663,248
16,745,407
Analysis per statutory database
17,663,248
16,745,407
Statutory database analysis does not agree to the trial balance by:
71,851
-
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(56,317)
(38,400)
Development costs
58,642
-
Depreciation of owned tangible fixed assets
1,307,773
1,396,836
Loss/(profit) on disposal of tangible fixed assets
13,215
(12,329)
Amortisation of intangible assets
341,329
341,329
Operating lease charges
140,182
137,941
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,187
5,836
Audit of the financial statements of the company's subsidiaries
29,599
28,109
35,786
33,945
For other services
Taxation compliance services
5,990
5,655
All other non-audit services
5,725
5,400
11,715
11,055
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
22
6
Employees
The average monthly number of persons (including directors) employed by the group during the year was:
Group
2024
2023
Number
Number
Aircrew
33
32
Engineering
31
28
Management and administration
15
14
Operations
6
6
Ancillary
1
1
86
81
Their aggregate remuneration comprised:
Group
2024
2023
£
£
Wages and salaries
4,195,352
3,707,301
Social security costs
411,868
407,202
Pension costs
157,485
234,067
4,764,705
4,348,570
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
268,291
421,867
Company pension contributions to defined contribution schemes
31,350
71,316
299,641
493,183
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
174,534
251,144
Company pension contributions to defined contribution schemes
31,350
24,093
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
23
8
Interest payable and similar expenses
2024
2023
£
£
Interest on loans
976,113
1,060,068
Amortisation of deal costs
18,751
18,749
Other interest
2,951
104
Total finance costs
997,815
1,078,921
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
698,832
515,090
Adjustments in respect of prior periods
12,299
(1,844)
Total current tax
711,131
513,246
Deferred tax
Origination and reversal of timing differences
(237,860)
(186,506)
Adjustment in respect of prior periods
1,916
Total deferred tax
(237,860)
(184,590)
Total tax charge
473,271
328,656
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
9
Taxation (continued)
24
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
1,683,160
1,392,033
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
420,790
306,386
Tax effect of expenses that are not deductible in determining taxable profit
101,995
73,382
Change in unrecognised deferred tax assets
(30,461)
17,304
Adjustments in respect of prior years
12,609
(1,844)
Depreciation on assets not qualifying for tax allowances
3,587
2,206
Deferred tax adjustments in respect of prior years
1,916
Deferred tax not recognised
(15,216)
Effect of tax rates in foreign jurisdictions
(35,249)
(55,478)
Taxation charge
473,271
328,656
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
25
10
Intangible fixed assets
Group
Goodwill
Customer relations
Brands
Total
£
£
£
£
Cost
At 1 October 2023 and 30 September 2024
1,641,228
1,715,000
1,261,000
4,617,228
Amortisation and impairment
At 1 October 2023
1,420,033
987,143
544,369
2,951,545
Amortisation charged for the year
163,946
114,333
63,050
341,329
At 30 September 2024
1,583,979
1,101,476
607,419
3,292,874
Carrying amount
At 30 September 2024
57,249
613,524
653,581
1,324,354
At 30 September 2023
221,195
727,857
716,631
1,665,683
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
11
Tangible fixed assets
Group
Buildings
Hangar & role equipment
Helicopters & aeroplanes
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 October 2023
831,221
4,471,504
17,497,278
23,035
208,255
23,031,293
Additions
36,006
27,258
14,286
18,716
96,266
Disposals
(1,121,138)
(2,396)
(31,648)
(1,155,182)
Exchange adjustments
(3,505)
(106,112)
(142)
(486)
(110,245)
At 30 September 2024
867,227
4,495,257
16,270,028
34,783
194,837
21,862,132
Depreciation and impairment
At 1 October 2023
212,087
3,128,384
8,317,468
(95,868)
75,065
11,637,136
Depreciation charged in the year
31,145
271,776
949,117
18,754
36,981
1,307,773
Eliminated in respect of disposals
(1,021,710)
(1,446)
(30,823)
(1,053,979)
Exchange adjustments
(3,505)
(70,278)
(142)
(486)
(74,411)
At 30 September 2024
243,232
3,396,655
8,174,597
(78,702)
80,737
11,816,519
Carrying amount
At 30 September 2024
623,995
1,098,602
8,095,431
113,485
114,100
10,045,613
At 30 September 2023
619,134
1,343,120
9,179,810
118,903
133,190
11,394,157
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
11
Tangible fixed assets (continued)
26
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
18,422,000
18,422,000
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 October 2023 and 30 September 2024
18,422,000
Carrying amount
At 30 September 2024
18,422,000
At 30 September 2023
18,422,000
13
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Irish Helicopters Limited
Republic of Ireland
Helicopter services
Ordinary
100.00
PLM Dollar Group Limited
United Kingdom
Helicopter services
Ordinary
100.00
-
14
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,562,180
2,797,282
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
11,675,104
14,400,975
n/a
n/a
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
27
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Spares
1,829,011
2,089,850
-
-
Fuel
80,914
97,103
1,909,925
2,186,953
-
-
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,450,518
1,787,863
Corporation tax recoverable
19,135
Other debtors
414,867
326,143
Prepayments and accrued income
548,127
513,142
75,000
75,000
2,432,647
2,627,148
75,000
75,000
Amounts falling due after more than one year:
Other debtors
148,668
170,134
Total debtors
2,581,315
2,797,282
75,000
75,000
Other debtors includes £504,661 (2023: £548,226) of prepaid maintenance costs, of which £148,668 (2023: £170,134) is classified as falling due after more than one year.
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
1,222,874
1,084,984
Amounts owed to group undertakings
8,250,068
6,306,458
Corporation tax payable
336,916
261,686
Other taxation and social security
662,003
855,580
-
-
Accruals and deferred income
2,203,112
1,799,515
1,236,371
59,194
4,424,905
4,001,765
9,486,439
6,365,652
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
28
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
2,882,415
5,370,156
2,882,415
5,370,156
Shareholder loans
19
5,366,703
6,146,320
5,366,703
6,146,320
8,249,118
11,516,476
8,249,118
11,516,476
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
29
19
Interest-bearing loans and borrowings
This note provides information about the contractual terms of the group's and parent company's interest-bearing loans and borrowings which are measured at amortised cost.
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,882,415
5,370,156
2,882,415
5,370,156
Preference shares
9
9
9
9
Shareholder loans
5,366,694
6,146,311
5,366,694
6,146,311
8,249,118
11,516,476
8,249,118
11,516,476
Payable after one year
8,249,118
11,516,476
8,249,118
11,516,476
Terms and debt repayment schedule
2024
2023
Group and company
Nominal interest rate
Year of maturity
£
£
Bank loans
M & E facility
LIBOR plus 2.4%
2025
2,126,751
3,858,949
Cashflow facility
LIBOR plus 0.5% - 3.5%
2025
755,663
1,511,207
2,882,414
5,370,156
Shareholder loans
A1 loan notes
10%
2,938,310
3,272,602
A2 loan notes
10%
1,636,809
1,965,979
B1 loan notes
10%
791,575
907,730
5,366,694
6,146,311
8,249,108
11,516,467
The loan notes and the long-term loans are secured by floating charges over all assets.
The A1, A2 and B1 loan notes have no fixed date of maturity. Interest with regard to the A1 notes is payable on 75% of the outstanding balance, with the interest on the remaining 25% rolling up each year.
Included in the loans above are deal costs of £18,751 (2023: £37,501). During the year deal costs of £18,750 (2023: £18,749) were amortised.
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
30
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
844,424
1,020,258
Other short term timing differences
(31,544)
(8,123)
Arising on business combinations
321,206
359,811
1,134,086
1,371,946
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
1,371,946
-
Credit to profit or loss
(237,860)
-
Liability at 30 September 2024
1,134,086
-
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
157,485
234,067
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
31
22
Share capital
Group and company
2024
2023
Ordinary share capital
£
£
Issued and fully paid
714,465 A1 ordinary shares of 1p each
7,145
7,145
1,285,535 A2 ordinary shares of 1p each
12,855
12,855
222,526 B ordinary shares of 1p each
2,225
2,225
461,946 C ordinary shares of 5p each
23,097
23,097
32,857 D ordinary shares of 1p each
329
329
45,651
45,651
The holders of A1, B, C and D ordinary shares are entitled to vote, receive dividends and participate in capital distributions.
The holders of A2 ordinary shares are not entitled to vote except in the event of default. They are entitled to dividends and participate in capital distributions.
There are 87,207 (2023: 87,207) preference shares of 0.01p each in issue. The preference shares do not carry voting rights. They carry the right to a fixed dividend and limited rights to capital distributions. Nil (2023: 17,169) preference shares were bought back and cancelled during the current year at a price of £nil (2023: £17,169).
23
Reserves
Share premium
Share premium represents the excess of the proceeds received from the issue of shares over the nominal value of those shares.
Profit and loss account
Profit and loss account comprises cumulative undistributed earnings of the group.
Other reserve
The other reserve represents the cumulative amount of foreign currency translation differences arising on the translation of the foreign subsidiary into the group's presentational currency.
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
32
24
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
115,691
69,000
-
-
Between two and five years
411,283
156,000
-
-
In over five years
252,000
117,000
-
-
778,974
342,000
-
-
25
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel, comprising the directors, is as follows.
2024
2023
£
£
Aggregate compensation
258,940
435,944
Other related party transactions
The company and its subsidiaries have issued loan notes to Lloyds Development Capital LLP. The principal amount outstanding at the year end and the principal terms are included in note 19.
In addition to the balances in note 19 cumulative accrued interest of £1,229,943 (2023: £55,537) in relation to shareholder loans is included in accruals.
26
Controlling party
The directors of the group are considered the ultimate controlling party.
No other consolidated group financial statements include the results of the company.
27
Guarantees and securities
Bank of Scotland plc have provided a performance guarantee backed by a cash deposit in relation to a customer contract in the normal course of business.
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
33
28
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,209,889
1,063,377
Adjustments for:
Taxation charged
473,271
328,656
Finance costs
997,815
1,078,921
Investment income
(1,447)
(176)
Loss/(gain) on disposal of tangible fixed assets
13,215
(12,329)
Amortisation and impairment of intangible assets
341,329
341,329
Depreciation and impairment of tangible fixed assets
1,307,773
1,396,836
Foreign exchange gains
(32,776)
-
Movements in working capital:
Decrease/(increase) in stocks
277,028
(155,751)
Decrease/(increase) in debtors
235,102
(657,312)
(Decrease)/increase in creditors
(866,248)
149,563
Cash generated from operations
3,954,951
3,533,114
29
Analysis of changes in net debt - group
1 October 2023
Cash flows
Market value movements
30 September 2024
£
£
£
£
Cash at bank and in hand
1,838,633
242,069
-
2,080,702
Borrowings excluding overdrafts
(11,516,476)
4,046,975
(779,617)
(8,249,118)
(9,677,843)
4,289,044
(779,617)
(6,168,416)
30
Prior period adjustment
Within turnover and cost of sales, invoices have been identified which should have been presented net as other operating income. This reclassification has no impact on the reported operating profit or net assets of the company.
Osprey Aviation Services (UK) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
30
Prior period adjustment (continued)
34
Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 30 September 2023
£
£
£
Turnover
17,131,117
(385,710)
16,745,407
Cost of sales
(6,441,521)
360,000
(6,081,521)
Other operating income
-
25,710
25,710
Profit after taxation
1,063,377
-
1,063,377
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