Company registration number 05241591 (England and Wales)
ELBIT SYSTEMS UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
ELBIT SYSTEMS UK LIMITED
COMPANY INFORMATION
Directors
Mr B Machlis
Mr M C S J Fausset
Sir M W Poffley
Mr C P Smith
Mr Y Kagan
(Appointed 1 July 2024)
Sir S J Bollom
(Appointed 1 May 2025)
Company number
05241591
Registered office
77 Kingsway
London
WC2B 6SR
Auditor
Edwards
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
ELBIT SYSTEMS UK LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 31
ELBIT SYSTEMS UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Principal activities and review of business

The principal activity of the company continued to be that of an intermediate parent undertaking. Since 2022 a number of contracts were entered into where the UK Ministry of Defence is the ultimate customer. The company reported higher turnover for the year ended 31 December 2024 driven by the delivery phases of the closing 2023 contract orderbook.

These contract activities involve the design, development, and assembly of products and technologies for the defence market including; integrated software solutions and training and simulation systems.

 

Key to the on-going success of the company is its ability to deliver innovative and bespoke products and services to help provide solutions to our key customers’ needs. This is delivered through Elbit Systems UK Limited’s own development and assembly capabilities as well as leveraging the links that exist through the larger Elbit Systems group.

 

The results for the year and the financial position at the year end reflect current market conditions, with the UK government actively spending in all the company's market sectors in light of current global affairs. The company moves forward with a healthy orderbook and more than adequate liquidity through the support of its parent company (Elbit Systems Ltd, Israel) and cash collections from third party sources.

 

Some of the key financial performance indicators are shown below:

 

Principal risks and uncertainties

The company's ambition and purpose is to be a world leading source of innovative technology-based systems for diverse defence and civilian applications and to deliver solutions that provide a decisive advantage and freedom of action to all our customers.

 

Therefore, the level of conflict in the world does have a bearing on the company's market activity. There is always the risk of government budgetary cutbacks in defence programmes. However, in the current global political environment we do not expect any imminent defence spending reductions in our market or product development areas.

 

At present the company’s position in a number of contracts covering the air, land and naval sectors provides resilience in the event of a downturn in a single sector of the market. With our highly respected development capability, the company has confidence in its ability to react positively to all market conditions.

 

The directors know of no reason to believe that any uncertainty exists that would cast any doubt over the ability of the company to continue as a going concern and therefore the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Development and performance

The company continues to commit resource and time, both in the UK and through its parent company in Israel, to the development of new product and product enhancements that reinforce the company's competitive position.

 

ELBIT SYSTEMS UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Key performance indicators

Key performance indicators are used to measure and evaluate company performance against targets and monitor various activities throughout the company. The main key performance indicators employed by the company are:

S172 statement

Under Section 172 of the Companies Act 2006, directors are required to promote the success of the Company for the benefit of its shareholders and, in doing so, to have regard to the interest of all of our stakeholders.

 

The Board of Directors of Elbit Systems UK Limited considers, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in S172(1) (a-f) of the Companies Act 2006) in the decisions taken during the year ended 31 December 2024.

 

The board of directors have identified the key stakeholders that are impacted by the company’s activities and have identified the activities through which the board can either directly or indirectly (through senior management or the wider group’s engagement) engage with these stakeholders. The key stakeholders identified during 2024 are customers, suppliers, employees, local community and parent company (Elbit Systems Limited).

 

Examples of direct and indirect engagement activities with the stakeholders are:

 

Customers:

Suppliers:

 

Employees:

 

 

ELBIT SYSTEMS UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

S172 statement (continued)

 

Local Community:

 

Parent company

On behalf of the board

Mr M C S J Fausset
Director
1 August 2025
ELBIT SYSTEMS UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr B Machlis
Mr M C S J Fausset
Sir M W Poffley
Mr C P Smith
Mr J Gaspar
(Resigned 1 July 2024)
Mr Y Kagan
(Appointed 1 July 2024)
Sir S J Bollom
(Appointed 1 May 2025)
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Auditor

The auditor, Edwards, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

The company regularly considers its energy usage as part of optimizing operations and takes relevant actions to improve energy efficiency. During the year, the company measured its energy usage as set out below:

 

2024
2023
Net UK energy use (kWh)
1,161,800
797,395
Associated Greenhouse gas emissions (tCO2e)
194.80
157.80
Intensity ratio (Revenue earned per tCO2e, £M / tCO2e)
0.32
0.26

UK energy use and associated greenhouse gases have been calculated by applying the methodology and conversion factors published by the Department for Energy Security & Net Zero.

ELBIT SYSTEMS UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr M C S J Fausset
Director
1 August 2025
ELBIT SYSTEMS UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

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

ELBIT SYSTEMS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELBIT SYSTEMS UK LIMITED
- 7 -
Opinion

We have audited the financial statements of Elbit Systems UK Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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.

Opinions on other matters prescribed by the Companies Act 2006

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

ELBIT SYSTEMS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELBIT SYSTEMS UK LIMITED (CONTINUED)
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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 obtained an understanding of the legal and regulatory frameworks within which the Company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation and health & safety regulations compliance.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be in the following areas: recognition of income, the override of controls by management, revenue journals, inappropriate treatment of non-routine transactions and areas of estimation uncertainty specifically relating to the valuation of fixed asset investments, revenue and profit recognition relating to long term contracts and recognition and valuation of leases. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, review and discussion of non-routine transactions, sample testing on the posting of journals and review of accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

ELBIT SYSTEMS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELBIT SYSTEMS UK LIMITED (CONTINUED)
- 9 -

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.

Use of our report

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

Paul Tonks BSc (Econ) FCA (Senior Statutory Auditor)
For and on behalf of Edwards, Statutory Auditor
Chartered Accountants
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
6 August 2025
ELBIT SYSTEMS UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
as restated
Notes
£
£
Turnover
3
62,493,510
40,530,094
Cost of sales
(62,951,394)
(42,512,223)
Gross loss
(457,884)
(1,982,129)
Administrative expenses
(17,141,949)
(10,313,346)
Other operating income
12,918,632
16,048,000
Operating (loss)/profit
4
(4,681,201)
3,752,525
Interest receivable and similar income
8
1,540,489
1,550,605
Interest payable and similar expenses
9
(665,831)
(112,915)
Gain on disposal of fixed asset investments
10
1,813,021
-
(Loss)/profit before taxation
(1,993,522)
5,190,215
Tax on (loss)/profit
11
938,848
(302,894)
(Loss)/profit for the financial year
(1,054,674)
4,887,321

The statement of income and retained earnings has been prepared on the basis that all operations are continuing operations.

ELBIT SYSTEMS UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
2,213,318
2,418,557
Tangible assets
13
16,782,039
7,702,000
Investments
14
11,611,062
17,381,562
30,606,419
27,502,119
Current assets
Stocks
17
19,344,319
23,123,345
Debtors falling due after more than one year
18
250,000
-
0
Debtors falling due within one year
18
76,648,613
100,643,351
Cash at bank and in hand
218,337
193,858
96,461,269
123,960,554
Creditors: amounts falling due within one year
19
(70,071,390)
(99,682,950)
Net current assets
26,389,879
24,277,604
Total assets less current liabilities
56,996,298
51,779,723
Creditors: amounts falling due after more than one year
20
(8,128,661)
-
0
Provisions for liabilities
Deferred tax liability
23
-
0
687,500
-
(687,500)
Net assets
48,867,637
51,092,223
Capital and reserves
Called up share capital
24
1
1
Profit and loss reserves
48,867,636
51,092,222
Total equity
48,867,637
51,092,223
The financial statements were approved by the board of directors and authorised for issue on 1 August 2025 and are signed on its behalf by:
Mr M C S J Fausset
Director
Company registration number 05241591 (England and Wales)
ELBIT SYSTEMS UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
1
46,204,901
46,204,902
Year ended 31 December 2023:
Profit and total comprehensive income
-
4,887,321
4,887,321
Balance at 31 December 2023
1
51,092,222
51,092,223
Year ended 31 December 2024:
Loss and total comprehensive income
-
(1,054,674)
(1,054,674)
New UK GAAP transition adjustments
-
(1,169,912)
(1,169,912)
Balance at 31 December 2024
1
48,867,636
48,867,637
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information

Elbit Systems UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 77 Kingsway, London, WC2B 6SR.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

 

These financial statements for the year ended 31 December 2024 are the first financial statements of the company prepared in accordance with the amendments to FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, following the FRC’s periodic review in 2024.

The company has elected to early adopt the new requirements and the date of transition was 1 January 2024. Adjustments on transition have been made in respect of leases including the recognition of right of use assets and corresponding lease liabilities. Restatement of comparative figures is not permitted, therefore, the cumulative effect of initially applying the new standards is recorded as an adjustment to retained earnings in the company’s statement of changes in equity.

This 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 consolidated 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:

 

 

The financial statements of the company are consolidated in the financial statements of Elbit Systems Limited. These consolidated financial statements are available from www.elbitsystems.com.

The company has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

Atruet 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.

ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.3
Turnover

Turnover is the total amount, excluding value added tax, receivable by the company in the ordinary course of business for goods supplied and services provided as a principal.

 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

Sales of services and long-term contracts are recognised when the outcome of the transaction can be reliably estimated. Turnover is recognised by reference to the stage of completion based on services performed to date as a percentage of the total contractual obligation.

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 other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
10 years straight line
Licences
3 - 5 years straight line

Amortisation is not recognised until assets are brought into use.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
25 - 30 years straight line
Plant and equipment
7 - 10 years straight line
Fixtures and fittings
5 - 7 years straight line
Computer equipment
3 - 4 years straight line
Right of use assets
Over the term of the lease
Office furniture
3 - 5 years straight line

Assets in the course of construction are not depreciated.

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.

ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Contract accounting

The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for any losses not underwritten by group / parent undertakings as soon as they are foreseen.

 

Contract work in progress is stated at cost incurred, less those transferred to the profit and loss account, after deducting foreseeable losses and payments on account not matched with turnover.

 

Amounts recoverable on contracts are included within trade debtors and represent turnover recognised in excess of payments on account. Payments on account are included within accruals and deferred income and represent payments on account received in excess of turnover recognised.

ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.11
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Short term trade debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Basic financial liabilities

Short term trade creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.12
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.15
Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within tangible fixed assets, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other tangible fixed assets. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

 

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

 

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

 

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.17

Corresponding amounts

The directors have re-analysed certain corresponding amounts in the company's profit and loss account. In the directors’ opinion, this change in approach more accurately reflects the company’s ongoing operations and allows for more meaningful presentation and disclosure in the company’s financial statements.

ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Valuation of investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Long-term contracts

The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for any losses as soon as they are foreseen.

 

Contract work in progress is stated at cost incurred, less those transferred to the profit and loss account, after deducting foreseeable losses and payments on account not matched with turnover.

Leases

At inception, the company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right of use asset and a lease liability at the lease commencement date. Right of use assets are included within tangible fixed assets, apart from those that meet the definition of investment property.

 

The lease liability measurement is discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's estimated incremental borrowing rate.

ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
3
Turnover and other revenue

Turnover is wholly attributable to the company's principal activity. Segmental analysis of turnover has not been given because the directors consider that such disclosure would be seriously prejudicial to the commercial interests of the company.

2024
2023
£
£
Other revenue
Interest income
1,540,489
1,050,605
Dividends received
-
500,000
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(28,850)
(13,198)
Research and development costs
10,067,044
4,149,210
Depreciation of owned tangible fixed assets
1,308,457
459,584
Amortisation of intangible assets
433,091
454,329
Operating lease charges
-
706,619
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 company
49,400
42,000
For other services
Taxation compliance services
5,900
5,775
Other taxation services
32,500
12,450
All other non-audit services
9,800
2,800
48,200
21,025
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
6
Employees

The average monthly number of persons (excluding directors) employed by the company during the year was:

2024
2023
Number
Number
Management
10
12
Sales and administration
34
30
Operations
240
224
Total
284
266

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
20,581,885
18,801,486
Social security costs
2,603,187
2,227,930
Pension costs
1,341,252
942,719
24,526,324
19,765,551
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
426,045
944,562
Company pension contributions to defined contribution schemes
-
4,972
426,045
949,534

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
276,045
798,834
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
1,501,296
1,012,426
Other interest income
39,193
38,179
Total interest revenue
1,540,489
1,050,605
Other income from investments
Dividends received
-
0
500,000
Total income
1,540,489
1,550,605
9
Interest payable and similar expenses
2024
2023
£
£
Interest on leases liabilities
451,715
-
Interest payable to group undertakings
214,116
55,000
Other interest
-
0
57,915
665,831
112,915
10
Gain on disposal of fixed asset investments
2024
2023
£
£
Gain on disposal of fixed asset investments
1,813,021
-
0

During the year, the company disposed of it's 100% shareholding in its subsidiary undertaking, Elite KL Limited, for a total consideration of £8,306,565 less transaction expenses of £723,044.

ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
196,207
Adjustments in respect of prior periods
(251,348)
(299,813)
Total current tax
(251,348)
(103,606)
Deferred tax
Origination and reversal of timing differences
(687,500)
157,500
Adjustment in respect of prior periods
-
0
249,000
Total deferred tax
(687,500)
406,500
Total tax (credit)/charge
(938,848)
302,894

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(1,993,522)
5,190,215
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
(498,381)
1,297,554
Tax effect of expenses that are not deductible in determining taxable profit
804
10,613
Tax effect of income not taxable in determining taxable profit
(453,255)
(125,000)
Adjustments in respect of prior years
(251,348)
(297,797)
Effect of change in corporation tax rate
-
0
(11,750)
Group relief
2,704
(825,314)
Depreciation on assets not qualifying for tax allowances
23,692
10,012
Deferred tax adjustments in respect of prior years
-
0
249,000
Other timing differences
2,419
-
0
Tax effect of enhanced capital allowances
-
0
(4,424)
Tax effect of transition to new UK GAAP
(292,478)
-
0
Deferred tax assets not recognised
526,995
-
0
Taxation (credit)/charge for the year
(938,848)
302,894
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Taxation
(Continued)
- 24 -

Factors that may affect future tax charges

 

The company has taxable trading losses of £4,306,004 (2023: £Nil) available to carry forward. At 31 December 2024, a potential deferred tax asset of £1,076,501 (2023: £Nil) was calculated at 25% in respect of these unused tax losses. Of this amount, a total of £801,000 (2023: £Nil) has been provided for in the financial statements on the basis that there will be taxable profits available against which temporary timing differences can be utilised in the foreseeable future.

 

In addition, as a result of the company's early adoption of the new requirements of FRS102, transition adjustments of £1,169,912 were made in respect of leases in the statement of changes in equity. In accordance with HMRC guidance, the associated corporation tax relief is being spread over the shorter of the lease term and 10 years. As a result, at 31 December 2024, a potential deferred tax asset of £251,494 (2023: £Nil) was calculated at 25% in respect of carried forward unused relief but no deferred tax asset has been recognised on the basis that the directors consider that it is not probable that it will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

12
Intangible fixed assets
Software
Licences
Total
£
£
£
Cost
At 1 January 2024
1,625,310
1,326,724
2,952,034
Additions
338,392
15,200
353,592
Disposals
(125,740)
-
0
(125,740)
At 31 December 2024
1,837,962
1,341,924
3,179,886
Amortisation and impairment
At 1 January 2024
114,669
418,808
533,477
Amortisation charged for the year
180,046
253,045
433,091
At 31 December 2024
294,715
671,853
966,568
Carrying amount
At 31 December 2024
1,543,247
670,071
2,213,318
At 31 December 2023
1,510,641
907,916
2,418,557
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
13
Tangible fixed assets
Leasehold land and buildings
Assets under construction
Fixtures and fittings
Right of use assets
Total
£
£
£
£
£
Cost
At 1 January 2024
7,264,147
-
0
1,456,964
-
0
8,721,111
Additions
837,578
931,273
801,514
297,908
2,868,273
New UK GAAP transition adjustments
-
0
-
0
-
0
10,204,819
10,204,819
At 31 December 2024
8,101,725
931,273
2,258,478
10,502,727
21,794,203
Depreciation and impairment
At 1 January 2024
476,513
-
0
542,598
-
0
1,019,111
Depreciation charged in the year
255,712
-
0
281,082
771,663
1,308,457
New UK GAAP transition adjustments
-
0
-
0
-
0
2,684,596
2,684,596
At 31 December 2024
732,225
-
0
823,680
3,456,259
5,012,164
Carrying amount
At 31 December 2024
7,369,500
931,273
1,434,798
7,046,468
16,782,039
At 31 December 2023
6,787,634
-
0
914,366
-
0
7,702,000
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
11,610,912
17,381,412
Investments in joint ventures
16
150
150
11,611,062
17,381,562

During the year, the company disposed of it's 100% shareholding in its subsidiary undertaking, Elite KL Limited, for a total consideration of £8,306,565 less transaction expenses of £723,044.

Movements in fixed asset investments
Shares in subsidiaries and joint ventures
£
Cost or valuation
At 1 January 2024
17,381,562
Disposals
(5,770,500)
At 31 December 2024
11,611,062
Carrying amount
At 31 December 2024
11,611,062
At 31 December 2023
17,381,562
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shareholding
Direct
ESUK Aerospace and
77 Kingsway, London
Intermediate
Ordinary
100.00
Simulation (Group) Limited
WC2B 6SR.
holding company
UAV Tactical Systems
Unit F Meridian East,
Defence contractor
Ordinary
51.00
Limited
Meridian Business Park,
Braunstone Town,
Leicester, LE19 1WZ.
UAV Engines Limited
Lynn Lane, Shenstone,
Aerospace and
Ordinary
100.00
Lichfield, Staffs, WS14 0EA.
defence
Instro Precision Limited
Sentinel House, Artillery Way,
Defence contractor
Ordinary
100.00
Discovery Park, Sandwich,
Kent, CT13 9FL.
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shareholding
Indirect
ESUK Aerospace and
77 Kingsway, London
Intermediate
Ordinary
100.00
Simulation (Holdings) Limited
WC2B 6SR.
holding company
ESUK Aerospace and
77 Kingsway, London
Aerospace and
Ordinary
100.00
Simulation Limited
WC2B 6SR.
defence
16
Joint ventures

Details of the company's joint ventures at 31 December 2024 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Affinity Flying Training
See below
Defence contractor
Ordinary
50.00
Services Limited
Affinity Flying Services
See below
Defence contractor
Ordinary
50.00
Limited
Affinity Capital Works
See below
Defence contractor
Ordinary
50.00
Limited
The registered office of the above companies is Hangar 29 Raf Cranwell, Sleaford, Lincolnshire, England, NG34 8HB
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
17
Stocks
2024
2023
£
£
Raw materials and consumables
-
102,746
Work in progress
19,344,319
23,020,599
19,344,319
23,123,345
18
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
44,717,496
52,602,554
Corporation tax recoverable
1,323,864
1,248,061
Amounts owed by group undertakings
28,643,689
45,981,410
Other debtors
250,000
143,524
Prepayments and accrued income
1,713,564
667,802
76,648,613
100,643,351
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
250,000
-
0
Total debtors
76,898,613
100,643,351
19
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Lease liabilities
21
639,105
-
0
Trade creditors
164,433
5,141,301
Amounts owed to group undertakings
22,045,657
45,780,553
Amounts owed to undertakings in which the company has a participating interest
3,051,984
3,055,000
Taxation and social security
4,242,449
911,137
Accruals and deferred income
39,927,762
44,794,959
70,071,390
99,682,950
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
20
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Lease liabilities
21
8,128,661
-
0
21
Lease liabilities

These financial statements for the year ended 31 December 2024 are the first financial statements of the company prepared in accordance with the amendments to FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, following the FRC’s periodic review in 2024.

The company has elected to early adopt the new requirements and the date of transition was 1 January 2024. Adjustments on transition have been made in respect of leases including the recognition of right of use assets and corresponding lease liabilities. Restatement of comparative figures is not permitted, therefore, the cumulative effect of initially applying the new standards is recorded as an adjustment to retained earnings in the company’s statement of changes in equity.

At 31 December 2024, right of use assets capitalised on the statement of financial position included in tangible fixed assets had a total cost of £10,502,727 (2023 - £Nil) with lease liabilities of £8,767,766 (2023 - £Nil) included in creditors. During the year ended 31 December 2024, the depreciation charge of right of use assets was £771,663 (2023 - £Nil) and interest on lease liabilities was £451,715 (2023 - £Nil). On transition, the cumulative effect of applying the new reporting standards totalled £1,169,912 (2023 - £Nil) which has been reflected in the Statement of Changes in Equity accordingly.

 

When measuring lease liabilities, the company discounted lease payments using notional borrowing rates. For the year ended 31 December 2024, the weighted average notional borrowing rate was 5.40% (2023 - Nil).

 

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

 

2024
2023
£
£
Within one year
639,105
-
0
In two to five years
2,023,686
-
0
In over five years
6,104,975
-
0
8,767,766
-
0
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,341,252
942,719

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
23
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
844,000
700,000
Tax losses
(801,000)
-
Retirement benefit obligations
(43,000)
-
Other timing differences
-
(12,500)
-
687,500
2024
Movements in the year:
£
Liability at 1 January 2024
687,500
Credit to profit or loss
(687,500)
Liability at 31 December 2024
-
24
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
1,491
1,491
1
1

 

25
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
6,057,452
1,437,626
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
26
Operating lease commitments
Lessee

 

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
-
0
511,230
Between two and five years
-
0
1,645,712
In over five years
-
0
52,264
-
0
2,209,206

These financial statements for the year ended 31 December 2024 are the first financial statements of the company prepared in accordance with the amendments to FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, following the FRC’s periodic review in 2024.

The company has elected to early adopt the new requirements and the date of transition was 1 January 2024. Adjustments on transition have been made in respect of leases including the recognition of right of use assets and corresponding lease liabilities. As a result, no operating lease commitments are disclosed at 31 December 2024.

27
Related party transactions

The company has taken advantage of the exemption conferred within FRS102 section 33.1A not to disclose transactions between wholly owned members of the same group.

 

The company owns 50% of the share capital of Affinity Flying Training Services Limited ("AFTSL"), Affinity Capital Works Limited ("ACWL") and Affinity Flying Services Limited ("AFSL"). The company also owns 51% of UAV Tactical Systems Limited ("UTACS").

 

During the year, the company charged interest of £Nil (2023 - £510,002) to AFTSL in relation to loans advanced. At 31 December 2024 included within debtors is an amount of £Nil (2023 - £Nil) due from AFTSL.

 

During the year, the company was charged interest of £214,116 (2023 - £55,000) by AFTSL in relation to a loan received during the previous year. At 31 December 2024 included within creditors is an amount of £3,051,984 (2023 - £3,055,000) due to AFTSL. This loan is unsecured, repayable on 28 September 2024 or such later date as may be agreed, with interest charged at 2% above the SONIA 3 month compounded rate.

 

During the year dividends of £Nil (2023 - £500,000) were received from ACWL.

28
Ultimate controlling party

The company is a subsidiary undertaking of Elbit Systems Limited, a company incorporated in Israel, which is the ultimate parent undertaking and controlling party.

 

Elbit Systems Limited is the largest and smallest group for which group financial statements are prepared. The group financial statements of this group are available to the public and may be obtained from www.elbitsystems.com.

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