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Registration number: 04584526

iFLY Indoor Skydiving Ltd

Annual Report and Financial Statements

for the Period from 1 January 2024 to 29 December 2024

 

iFLY Indoor Skydiving Ltd

Contents

Company Information

1

Strategic Report

2

Director's Report

3

Statement of Director's Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Financial Statements

12 to 21

 

iFLY Indoor Skydiving Ltd

Company Information

Director

M J Ryan

Company secretary

Harrison Clark (Secretarial) Ltd

Registered office

5 Deansway
Worcester
Worcestershire
WR1 2JG

Solicitors

Harrison Clark Rickerbys Limited
5 Deansway
Worcester
Worcestershire
WR1 2JG

Bankers

Royal Bank of Scotland Plc
45 The Promenade
Cheltenham
Gloucestershire
GL50 1PY

Auditors

Hazlewoods LLP
Staverton Court
Cheltenham
Gloucestershire
GL51 0UX

 

iFLY Indoor Skydiving Ltd

Strategic Report for the Period from 1 January 2024 to 29 December 2024

The director presents his strategic report for the period from 1 January 2024 to 29 December 2024.

Principal activity

The principal activity of the company is the sale of time in the company's vertical wind tunnels.

Fair review of the business

The results for the period, which are set out in the profit and loss account, show a pre-tax profit of £2,334,858 (2023 - £2,450,967). The company has tangible fixed assets including plant and machinery and fixtures, fittings and equipment valued in the financial statements at £13,036,556 (2023 - £13,918,887). The company has net assets of £8,249,830 (2023 - £6,783,873).

The company's key financial and other performance indicators during the period were as follows:

Financial KPIs

Unit

2024

2023

Revenue

£'000

12,579

12,517

Cash at bank and in hand

£'000

2,194

1,465

Deferred revenue

£'000

3,030

2,948


2024 saw a 4-tunnel operation in the UK with the O2, London, ending the year as a ‘flagship’ location in both volume and revenue albeit with some cannibalisation of Milton Keynes and Basingstoke tunnels.

Revenue was up slightly and was achieved by surgical discounting through the key gifting periods during the year, leading to high traffic, which allowed for on-site upsells; high flight upsells increased by 42% on 2023.

Agency business grew during 2024, contributed by successful Groupon and Wowcher campaigns, together with agency partners performing better during the year, which was mainly due to the gifting market responding well to the ‘sub £50’ criteria product; agency business has achieved a sizeable pipeline business for 2025.

Instructor shortages lead to restricted operational hours in some locations, especially Milton Keynes.

The military contract at Basingstoke was heavily supported to ensure flight time from the previous year was carried over and used during the year.

The focus on 2025 continues to be on increasing volumes and targeting the lucrative corporate market and STEM, together with the continued vigilant cost monitoring.

Principal risks and uncertainties

Business risks play a crucial role in shaping a company’s strategic and management decisions. Among the key risks and uncertainties faced by the company is competition from providers of other general leisure and sporting activities. Additionally, the challenges posed by the current economic climate, with are recent change in UK government and high interest rates, still continue to have an impact on consumer demand.

Approved by the director on 19 June 2025 and signed on its behalf by:


M J Ryan
Director

 

iFLY Indoor Skydiving Ltd

Director's Report for the Period from 1 January 2024 to 29 December 2024

The director presents his report and the financial statements for the period from 1 January 2024 to 29 December 2024.

Directors of the company

The directors who held office during the period were as follows:

S C Ward (ceased 20 November 2024)

M J Ryan (appointed 21 November 2024)

Dividends

In the period a dividend of £265,633 (2023 - £2,500,000) was paid.

Financial instruments

The company is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments means that they are not subject to price or liquidity risk.

Going concern

The business activities of iFLY Indoor Skydiving Limited (the UK company), together with the factors likely to affect its future development, performance and position are set out in the Strategic Report on page 2. The company has benefited from considerable financial resources and support from SkyVenture International (UK ) Limited (the parent) and historically from iFLY Holdings, LLC (the ultimate parent) and the director is confident that the underlying group business remains strong.

The director has performed an assessment of the company for a period covering 12 months from the date of signing of these financial statements.

The director has a reasonable expectation that the company will be able to continue as a going concern for a period of 12 months from the date of approving the financial statements.

Accordingly they considered that it is appropriate to prepare these financial statements on a going concern basis.

Future developments

Notwithstanding the internal and external challenges facing the business, the director remain confident that the company will maintain or improve its level of performance in the future.

Disclosure of information to the auditors

The director has taken 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. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP, having been appointed in the year, have expressed their willingness to continue in office.

Approved by the director on 19 June 2025 and signed on its behalf by:


M J Ryan
Director

 

iFLY Indoor Skydiving Ltd

Statement of Director's Responsibilities

The director is responsible for preparing the Strategic Report and Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

 

iFLY Indoor Skydiving Ltd

Independent Auditor's Report to the Members of iFLY Indoor Skydiving Ltd

Opinion

We have audited the financial statements of iFLY Indoor Skydiving Ltd (the 'company') for the period from 1 January 2024 to 29 December 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 29 December 2024 and of its profit for the period then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 original financial statements were 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 is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Director's Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Director's Report.

 

iFLY Indoor Skydiving Ltd

Independent Auditor's Report to the Members of iFLY Indoor Skydiving Ltd

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 the director

As explained more fully in the Statement of Director's Responsibilities set out on page 4, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

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

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;.

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

 

iFLY Indoor Skydiving Ltd

Independent Auditor's Report to the Members of iFLY Indoor Skydiving Ltd

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of this report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.





Ryan Hancock (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Cheltenham
Gloucestershire
GL51 0UX

19 June 2025

 

iFLY Indoor Skydiving Ltd

Profit and Loss Account for the Period from 1 January 2024 to 29 December 2024

Note

29 December
2024
£

31 December
2023
£

Turnover

3

12,578,701

12,516,816

Cost of sales

 

(2,634,492)

(2,420,506)

Gross profit

 

9,944,209

10,096,310

Administrative expenses

 

(7,603,002)

(7,645,041)

Operating profit

4

2,341,207

2,451,269

Other interest receivable and similar income

17,838

26,457

Interest payable and similar expenses

(24,187)

(26,759)

   

(6,349)

(302)

Profit before tax

 

2,334,858

2,450,967

Taxation

8

(603,269)

(679,740)

Profit for the financial period

 

1,731,589

1,771,227

The above results were derived from continuing operations.

The company has no recognised gains or losses for the period other than the results above.

 

iFLY Indoor Skydiving Ltd

(Registration number: 04584526)
Balance Sheet as at 29 December 2024

Note

29 December
2024
£

31 December
2023
£

Fixed assets

 

Tangible assets

9

13,036,556

13,918,887

Investments

10

-

1

 

13,036,556

13,918,888

Current assets

 

Stocks

11

14,689

29,506

Debtors

12

533,341

448,211

Cash at bank and in hand

13

2,193,901

1,464,859

 

2,741,931

1,942,576

Creditors: Amounts falling due within one year

14

(4,681,618)

(6,008,792)

Net current liabilities

 

(1,939,687)

(4,066,216)

Total assets less current liabilities

 

11,096,869

9,852,672

Creditors: Amounts falling due after more than one year

14

(883,958)

(964,792)

Provisions for liabilities

8

(1,963,081)

(2,104,006)

Net assets

 

8,249,830

6,783,874

Capital and reserves

 

Called up share capital

16

52,186

52,186

Share premium reserve

17

243,314

243,314

Profit and loss account

17

7,954,330

6,488,374

Total equity

 

8,249,830

6,783,874

Approved and authorised by the director on 19 June 2025
 


M J Ryan
Director

 

iFLY Indoor Skydiving Ltd

Statement of Changes in Equity for the Period from 1 January 2024 to 29 December 2024

Share capital
£

Share premium
£

Profit and loss account
£

Total
£

At 26 December 2022

52,186

243,314

7,217,147

7,512,647

Profit for the period

-

-

1,771,227

1,771,227

Dividends

-

-

(2,500,000)

(2,500,000)

At 31 December 2023

52,186

243,314

6,488,374

6,783,874

Share capital
£

Share premium
£

Profit and loss account
£

Total
£

At 1 January 2024

52,186

243,314

6,488,374

6,783,874

Profit for the period

-

-

1,731,589

1,731,589

Dividends

-

-

(265,633)

(265,633)

At 29 December 2024

52,186

243,314

7,954,330

8,249,830

 

iFLY Indoor Skydiving Ltd

Statement of Cash Flows for the Period from 1 January 2024 to 29 December 2024

Note

29 December
2024
£

31 December
2023
£

Cash flows from operating activities

Profit for the period

 

1,731,589

1,771,227

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

961,706

890,202

Loss on disposal of tangible assets

375

2,549

Loss from disposals of investments

1

-

Finance income

(17,838)

(26,457)

Finance costs

24,187

26,759

Income tax expense

8

603,269

679,740

 

3,303,289

3,344,020

Working capital adjustments

 

Decrease in stocks

11

14,817

12,911

(Increase)/decrease in trade debtors

12

(85,130)

202,892

(Decrease)/increase in trade creditors

14

(1,426,595)

1,578,334

Cash generated from operations

 

1,806,381

5,138,157

Income taxes paid

8

(725,607)

(485,448)

Net cash flow from operating activities

 

1,080,774

4,652,709

Cash flows from investing activities

 

Interest received

17,838

26,457

Acquisitions of tangible assets

(80,079)

(3,894,331)

Proceeds from sale of tangible assets

 

329

-

Net cash flows from investing activities

 

(61,912)

(3,867,874)

Cash flows from financing activities

 

Interest paid

(24,187)

(26,759)

Dividends paid

19

(265,633)

(2,500,000)

Net cash flows from financing activities

 

(289,820)

(2,526,759)

Net increase/(decrease) in cash and cash equivalents

 

729,042

(1,741,924)

Cash and cash equivalents at 1 January

 

1,464,859

3,206,783

Cash and cash equivalents at 29 December

 

2,193,901

1,464,859

 

iFLY Indoor Skydiving Ltd

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
5 Deansway
Worcester
Worcestershire
WR1 2JG

The principal place of business is:
Xscape
602 Marlborough Gate
Milton Keynes
Worcestershire
MK9 3XS

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ("FRS102") and the requirements of the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound unless where otherwise stated.

Name of parent of group

These financial statements are consolidated in the financial statements of iFLY Holdings LLC.

The financial statements of iFLY Holdings LLC may be obtained from 5 Deansway, Worcester, WR1 2JG.

Going concern

The business activities of iFLY Indoor Skydiving Limited (the UK company), together with the factors likely to affect its future development, performance and position are set out in the Strategic Report on page 2. The company has benefited from considerable financial resources and support from SkyVenture International (UK) Limited (the parent) and historically from iFLY Holdings, LLC (the ultimate parent) and the director is confident that the underlying group business remains strong. The director has performed an assessment of the company for a period covering 12 months from the date of signing of these financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

 

iFLY Indoor Skydiving Ltd

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

Judgements

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Depreciation method, rates and useful life of fixed assets - The assessment of the useful economic lives and the method of depreciating fixed assets requires judgement by the directors to ensure that assets match future economic benefits embodied in them.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Fixed asset useful life - Depreciation is charged to the profit and loss account based on the useful economic life selected, which requires an estimation of the period and profile over which the company expects to consume the future economic benefits embodied in the assets.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for time taken in the company's wind tunnels or for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value, that are denominated in foreign currencies, are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

iFLY Indoor Skydiving Ltd

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold improvements

10% straight line

Plant and machinery - wind tunnel

4% straight line

Plant and machinery - other

4% reducing balance

Fixtures and fittings

25% reducing balance

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All debtors are repayable within one year and are included at the undiscounted amount of the cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

iFLY Indoor Skydiving Ltd

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of the fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and the reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions, even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

iFLY Indoor Skydiving Ltd

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

Financial instruments


Classification
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other receivables and payables, loans from related parties and investments in non-puttable ordinary shares.

Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the Balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

Debt instruments like loans and other receivables and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms of financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of future payments discounted at a market rate of interest for a similar debt instrument.


 Recognition and measurement
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying value and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

 Impairment
Financial assets and liabilities are offset and the net amount recognised in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 

3

Revenue

The analysis of the company's Turnover for the period from continuing operations is as follows:

29 December
2024
£

31 December
2023
£

Time in wind tunnels

11,266,230

10,684,146

Sale of goods and equipment hire

974,818

1,577,863

Other income

337,653

254,807

12,578,701

12,516,816

The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.

 

iFLY Indoor Skydiving Ltd

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

 

4

Operating profit

Arrived at after charging/(crediting)

29 December
2024
£

31 December
2023
£

Depreciation expense

961,706

890,202

Operating lease expense - property

685,823

629,714

Loss on disposal of property, plant and equipment

375

2,549

Management charge

1,267,264

1,342,017

Advertising

728,955

632,362

 

5

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

29 December
2024
£

31 December
2023
£

Wages and salaries

2,497,536

2,443,520

Social security costs

125,823

144,334

Pension costs, defined contribution scheme

54,104

53,293

2,677,463

2,641,147

The average number of persons employed by the company (including the director) during the period, analysed by category was as follows:

29 December
2024
No.

31 December
2023
No.

Administration and support

60

59

Other departments

39

40

99

99

 

6

Director's remuneration

Directors' remuneration is borne by the parent company. Their services to iFly Indoor Skydiving Limited is inconsequential to attract a notional charge.

 

7

Auditors' remuneration

1 January 2024 to 29 December 2024
£

26 December 2022 to 31 December 2023
£

Audit of the financial statements

17,600

17,300

Other fees to auditors

All other non-audit services

2,780

2,700


 

 

iFLY Indoor Skydiving Ltd

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

 

8

Taxation

Tax charged/(credited) in the profit and loss account

29 December
2024
£

31 December
2023
£

Current taxation

UK corporation tax

746,218

325,606

UK corporation tax adjustment to prior periods

(2,024)

(21,522)

744,194

304,084

Deferred taxation

Arising from origination and reversal of timing differences

(140,925)

321,632

Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods

-

54,024

Total deferred taxation

(140,925)

375,656

Tax expense in the income statement

603,269

679,740

The tax on profit before tax for the period is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 23.5%).

The differences are reconciled below:

29 December
2024
£

31 December
2023
£

Profit before tax

2,334,858

2,450,967

Corporation tax at standard rate

583,715

576,481

Effect of expense not deductible in determining taxable profit

-

327

Deferred tax expense relating to changes in tax rates or laws

-

19,033

Increase in deferred tax from adjustment for prior periods

-

54,024

Decrease in current tax from adjustment for prior periods

-

(21,522)

Other tax effects for reconciliation between accounting profit and tax expense

19,554

51,397

Total tax charge

603,269

679,740

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Accelerated capital allowances

1,963,081

1,963,081

2023

Liability
£

Accelerated capital allowances

2,104,006

2,104,006

 

iFLY Indoor Skydiving Ltd

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

 

9

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 January 2024

206,907

1,286,999

20,622,527

22,116,433

Additions

-

75,629

4,450

80,079

Disposals

-

(975)

-

(975)

At 29 December 2024

206,907

1,361,653

20,626,977

22,195,537

Depreciation

At 1 January 2024

146,010

937,070

7,114,466

8,197,546

Charge for the period

20,688

97,958

843,060

961,706

Eliminated on disposal

-

(271)

-

(271)

At 29 December 2024

166,698

1,034,757

7,957,526

9,158,981

Carrying amount

At 29 December 2024

40,209

326,896

12,669,451

13,036,556

At 31 December 2023

60,897

349,929

13,508,061

13,918,887

 

10

Investments

29 December
2024
£

31 December
2023
£

Investment in subsidiary

-

1

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

iFly World Limited

5 Deansway, Worcester, England, WR1 2JG

Ordinary

0%

100%

Subsidiary undertakings

iFly World Limited was dissolved in the year having been dormant.

 

11

Stocks

29 December
2024
£

31 December
2023
£

Merchandise

14,689

29,506

 

iFLY Indoor Skydiving Ltd

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

 

12

Debtors

29 December
2024
£

31 December
2023
£

Trade debtors

135,480

169,264

Other debtors

126,258

107,105

Prepayments

271,603

171,842

533,341

448,211

 

13

Cash at bank and in hand

29 December
2024
£

31 December
2023
£

Cash at bank

2,190,279

1,458,023

Cash on hand

3,622

6,836

2,193,901

1,464,859

 

14

Creditors

Note

29 December
2024
£

31 December
2023
£

Due within one year

 

Trade creditors

 

355,926

311,884

Amounts due to related parties

104,711

1,441,683

Social security and other taxes

 

454,915

419,670

Other creditors

 

85,448

93,326

Accrued expenses

 

306,422

468,182

Corporation tax liability

8

344,193

325,606

Deferred income

 

3,030,003

2,948,441

 

4,681,618

6,008,792

Due after one year

 

Other creditors

 

883,958

964,792

 

15

Pension and other schemes

The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £54,104 (2023 - £53,293).

 

iFLY Indoor Skydiving Ltd

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

 

16

Share capital

Allotted, called up and fully paid shares

 

29 December 2024

31 December 2023

 

No.

£

No.

£

Ordinary of £0.00250 each

674,283

1,685.71

674,283

1,685.71

'A' Ordinary £0.15625 each

320,000

50,000.00

320,000

50,000.00

'B' Ordinary of £0.00250 each

200,000

500.00

200,000

500.00

 

1,194,283

52,186

1,194,283

52,186

Rights, preferences and restrictions

The shares in issued have separate dividends rights and equal rights in respect of capital and voting.

 

17

Reserves

Share premium represents the amounts received in excess of the nominal value of issued share capital.

Retained earnings represents cumulative profit or losses net of dividends and other adjustments.

 

18

Obligations under operating leases

The total of future minimum lease payments is as follows:

29 December
2024
£

31 December
2023
£

Not later than one year

685,807

693,630

Later than one year and not later than five years

2,743,228

2,774,520

Later than five years

14,082,303

14,687,263

17,511,338

18,155,413

The amount of non-cancellable operating lease payments recognised as an expense during the period was £685,823 (2023 - £629,714).

 

19

Dividends

29 December 2024
 £

31 December 2023
 £

Dividends paid

265,633

2,500,000

 

20

Parent and ultimate parent undertaking

The company's immediate parent is Skyventure International (UK) Limited, incorporated in England and Wales and the registered office being: 5 Deansway, Worcester, WR1 2JG.

 The ultimate parent is IFH Acquiistion LLC, a company incorporated in the United States of America and the registered office being: 251 Little Falls Dr. Wilmington, DE 19808.

The smallest and largest group in which the results of the company are consolidated is that headed by iFLY Holdings LLC, a company incorporated in the United States of America and the registered office being: 13265 N US Highway 183, Suite A, Austin, Texas, 78750.