|
Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
COMPANY INFORMATION
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
CONTENTS
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
By Sam Ong, Group CEO
Founded in 2018 by Yeoh Kai Shen and myself, AIRSCREAM has rapidly established itself as a pioneering force in the global vaping industry. From the outset, our ambition has been to evolve into a leading consumer-focused enterprise. We chose vaping as our foundation due to the sector’s dynamic growth potential and our commitment to delivering innovative, high-quality, and user-centric alternatives to traditional tobacco products. Our growth has been propelled by an agile and passionate team who are empowered to shape the company’s direction. This culture of collaboration and accountability has enabled AIRSCREAM to build a formidable international presence. As of the end of 2023, our flagship range, “AirsPops,” was distributed in over 80 countries, with standout performances in the African and Oceanic markets, where the brand consistently ranks among the top three. Recognition of our design and product innovation is evidenced by accolades such as two Red Dot Design Awards and one French Design Award, underscoring our dedication to excellence and aesthetics.
By Sam Ong, Group CEO
2024 has proven to be one of the most challenging years in AIRSCREAM’s history. A confluence of regulatory, operational, and macroeconomic factors has hindered our ability to achieve our targeted growth trajectory. Key setbacks included delays in the activation of strategic initiatives. Our Czech-based liquid production facility, a critical pillar of our vertical integration strategy, was originally scheduled to commence operations in 2024. Due to construction and regulatory delays, production is now expected to begin in late Q3 2025. Similarly, the official launch of our F&B venture in Malaysia, initially planned for mid-year, only materialised in December 2024. As a result, its anticipated contribution to Group revenue was negligible in FY2024. In China, a parallel F&B startup was discontinued after an extensive feasibility review determined that the product-market fit was insufficient. One of the most significant disruptions arose in New Zealand, where new vape regulations aimed at prohibiting single-use disposables came into force in October 2023. Unfortunately, the vagueness of the legislation and inconsistent enforcement created widespread uncertainty. Despite being the market leader in disposables prior to the regulatory shift, AIRSCREAM faced significant delays in validating compliant alternatives, leading to an estimated USD 6.9 million decline in sales revenue in the region. In South Africa, FY2024 shipments were USD 1.8 million lower than the previous year. However, this decline was not demand-driven. On the contrary, sales-out volume of our top-performing AirsPops 3ml ONEUSE product grew by 8.4% year-on-year, from 7.7 million to 8.4 million units. The decline in shipments was due to inventory adjustments at the distributor level, reflecting improved supply chain efficiency. Despite these headwinds, AIRSCREAM remains steadfast in our long-term vision. We continue to invest in product innovation, manufacturing excellence, and regulatory readiness to position ourselves for sustainable growth.
Page 1
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
By Sarah Sabri, Group PR & Compliance Manager
1. Introduction AIRSCREAM UK Limited operates across diverse global markets, each governed by distinct regulatory, economic, and political landscapes. This strategic diversity provides growth opportunities but also introduces a complex risk environment that must be actively managed. 2. Regulatory Environment 2.1 Compliance and Legislative Risks Adherence to evolving local, national, and supranational regulations covering safety, advertising, environmental impact, and consumer rights is paramount. Non-compliance could result in fines, product seizures, or reputational harm. 2.2 Country-Specific Regulatory Challenges Examples of key jurisdictions include
European Union: High standards under the Tobacco Products Directive (TPD), with ongoing revisions requiring vigilance.
United States: Stringent FDA regulations under the PMTA framework significantly impact our ability to launch or maintain products.
Canada: Subject to Health Canada’s robust Tobacco and Vaping Products Act (TVPA).
Asia: Disparate regulatory regimes, such as pharmaceutical classification in Japan or advertising bans in Indonesia and Malaysia.
Middle East & North Africa: Challenges include restrictive import regimes and inconsistent enforcement. Notably, AIRSCREAM is currently the only officially approved vape brand in Egypt.
Australia: All vapes require import licences; pharmacy-only sales since July 2024; OTC nicotine vapes allowed; strict flavour, packaging, and safety rules; new TGA standards effective July 2025.
New Zealand: Single-use vapes banned from June 2025; strict advertising, display, and promotional restrictions; mandatory child-safety features on refillable; loyalty programmes and giveaways prohibited.:
To mitigate risk, our e-liquid portfolio is developed with flexibility in nicotine content to facilitate local regulatory compliance.
3. Market Risks 3.1 Economic Volatility Economic downturns may suppress consumer discretionary spending, directly impacting on our sales. 3.2 Currency Exposure With operations across multiple currencies, exchange rate fluctuations pose a risk. We mitigate this through forward contracts and prudent treasury management. 3.3 Geopolitical Disruption Markets in Eastern Europe, the Middle East, and North Africa are particularly susceptible to volatility that can affect trade and logistics. 4. Competitive and Illicit Trade Risks 4.1 Market Competition We face competition from both global incumbents and emerging regional players. Sustaining market share requires continuous innovation and brand investment.
Page 2
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
4.2 Market Saturation In mature markets such as the UK, USA, and EU, incremental growth is challenging. Transitioning smokers to e-cigarettes and combatting misinformation are key strategic focuses. 4.3 Illicit Trade The proliferation of unregulated, often illegal, vape products continues to undermine legitimate players. Market examples include:
∙USA: Surge in illegal flavoured disposables from China, despite FDA-led task force action.
∙UK: Trading Standards regularly seizes non-compliant products from retailers.
∙Australia: Despite prescription-only nicotine rules, black market trade flourishes.
∙Europe: Inconsistent TPD enforcement results in cross-border discrepancies..
5. Technological and Cybersecurity Risks
5.1 Innovation Pressure The pace of technological advancement in vaping demands continual R&D investment to meet evolving consumer expectations. 5.2 Cybersecurity Our reliance on digital platforms and data poses risks of breaches or operational disruption. We have implemented robust controls and invest in cybersecurity infrastructure. 6. Environmental and Health-Related Risks 6.1 Environmental Impact Increasing scrutiny on sustainability and waste mandates compliance with evolving regulations such as the EU’s WEEE Directive. We continue to explore recyclable and biodegradable materials. 6.2 Health Concerns Vaping remains under public health debate. Negative media coverage or scientific findings may influence public perception and policy. We monitor global health guidance and proactively address misinformation.
By Daphne Ooi, Finance Manager, Group Reporting
In the fiscal year ending 2024, the Company maintained stable sales of £22.3 million as compared to prior year of £22.1 million. This reflects consistent performance despite a dynamic and tightly regulated market environment. The cash and bank balance of the company decreased by 8%, from £7.1 million to £6.6 million, primarily driven by strategic capital deployment aimed at supporting long-term growth. Key contributors include investment in subsidiaries to support our Czech-based liquid production facility as well as investment in early-stage venture which aligned with our innovation and diversification strategy. Operating profit decreased by 27%, from £5.2 million to £3.8 million. This decline was primarily driven by a reduced gross profit margin from 40% to 36% and an increase in operating expenses, a consequence of lower selling prices, coupled with increased marketing efforts.
Page 3
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Significantly, in 2024, the company made a strategic investment in a liquid production facility to improve operational agility. In parallel, the company invested in an F&B start-up which reflects our commitment to innovation, diversification and long-term value creation.
In addition to financial performance indicators, the Group monitors a set of non-financial KPIs that reflect our commitment to regulatory compliance, customer satisfaction, and employee engagement, all of which support long-term value creation. Regulatory Compliance Monitoring The Group places strong emphasis on compliance with local and international regulations. We closely monitor key compliance indicators to ensure our vape products meet safety, quality, and labelling requirements across all markets. By maintaining documentation, securing timely regulatory approvals, and adhering to ingredients, emissions, and device safety standards, we work proactively to meet evolving legal obligations. This approach supports continued market access, builds consumer trust, and reinforces our commitment to responsible business practices. Customer and Brand Reputation Strengthening brand recognition and increasing market share remain key priorities for the Group. We track Brand Awareness through social media reach, engagement metrics, and digital campaign performance, alongside monitoring market share trends within our key regions. We actively measure Customer Satisfaction and feedback ratings, ensuring we deliver a positive customer experience. Insights from these metrics enable us to refine our product offerings, marketing strategies, and customer service initiatives, further enhancing brand loyalty and competitive positioning. Employee Development and Engagement Our employees are integral to the Group’s continued success, and we are committed to fostering a positive and inclusive workplace culture. Employee engagement is monitored through regular feedback and staff surveys, while our turnover rate is closely tracked to ensure we retain skilled and experienced talent. We also invest in training and development, providing structured programmes focused on regulatory compliance, product knowledge, and professional growth. Each employee receives a minimum of 8 hours of training annually. These initiatives aim to enhance employee satisfaction, reduce turnover, and ensure our workforce remains equipped to meet evolving business needs.
This report was approved by the board and signed on its behalf.
Page 4
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The profit for the year, after taxation, amounted to £3,304,497 (2023 - £4,133,581).
A dividend of £765,942 (2023 - £1,299,566) was declared and issued during the current year.
The directors who served during the year were:
Page 5
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
By Sam Ong, Group CEO
AIRSCREAM continues to evolve, we are executing a forward-looking strategy focused on product innovation, operational efficiency, and geographic expansion. The following initiatives represent key components of our future growth trajectory: 1. Introduction of INKLORDS To address existing gaps in our product portfolio and diversify our market offerings, AIRSCREAM will be launching a secondary vape brand, “INKLORDS.” This new brand is designed to complement our existing line-up and target distinct consumer segments with differentiated features and aesthetics. By the end of 2026, INKLORDS is projected to contribute approximately 20% of total vape sales. This initiative is expected to significantly enhance our market presence and competitiveness, especially in high-growth markets. 2. Launch of M13 Nicotine Pouches In response to the rising global demand for smoke-free alternatives, AIRSCREAM will be introducing a new Nicotine Replacement Therapy (NRT) product under the brand “M13.” These nicotine pouches represent a strategic entry into an adjacent category with robust growth potential. Designed for consumers seeking a discreet and tobacco free experience, M13 will be priced competitively to support widespread adoption. Notably, M13 enables us to overcome regulatory barriers in key markets such as the United States (due to PMTA restrictions) and provides an alternative offering in mature markets like the UK. By the end of 2027, M13 is forecast to contribute at least 30% of total Group revenue. 3. Opening of Czech Warehouse and Liquid Production Facility. The commissioning of our new Czech warehouse and e-liquid production facility, scheduled to commence operations in late Q3 2025, represents a transformative milestone for the Group. The facility will significantly improve our speed-to-market within the European Union, while creating new revenue streams through OEM manufacturing opportunities for third-party brands. In addition, nicotine pouch production capabilities will be added at the same facility. These enhancements are expected to generate incremental revenues of approximately USD 1 million in FY2025, USD 4 million in FY2026, and USD 8 million in FY2027, contributing positively to our bottom line. 4. Expansion in the Middle East and Africa (MEA) In 2025, we will intensify our focus on growth within the Middle East and Africa (MEA) region. To support this expansion, the commercial team in the region will be increased from one to three members. A dedicated trading entity will be established to facilitate new customer relationships and streamline distribution. Furthermore, AIRSCREAM will actively participate in the world’s largest vape and alternative products tradeshow in Dubai in June 2025. This presence will help position the Group favourably within a region that is showing strong appetite for regulated vaping alternatives. 5. Closure of Non-Core Legal Entities As part of our commitment to operational efficiency and cost rationalisation, AIRSCREAM will be winding down underperforming or non-essential legal entities in Cyprus and Indonesia by end-2025 and Australia by end-2026. This rationalisation will improve group-level financial and administrative efficiency, allowing us to focus on markets that offer greater return on investment and strategic alignment.
Page 6
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6. Investment in New Start-ups AIRSCREAM remains committed to cultivating new business verticals through targeted investment in early-stage ventures. The expansion of OFFNIC Coffee, our Malaysia-based F&B start-up, will continue into 2025. Additionally, Imaginary Fam, a personal care start-up based in China, is set to launch in Q4 2025. Together, these ventures are projected to contribute approximately USD 250,000 in revenue to the Group. To reflect its evolving role as our venture arm, OFFNIC Limited will be renamed OFFNIC Three Thirteen Venture Angels Limited in Q2 2025. Through this vehicle, we intend to provide early-stage capital to promising founders in Australia, New Zealand, the United Kingdom, Malaysia, and Singapore, with a particular focus on consumer goods, services, and deep technology sectors. These future initiatives underscore AIRSCREAM’s commitment to innovation, strategic diversification, and long-term value creation. With disciplined execution, we are confident that these developments will position the Group for accelerated growth and strengthened resilience in the years to come.
The auditors, Harris & Trotter LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 7
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AIRSCREAM UK LIMITED
We have audited the financial statements of AIRSCREAM 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 the related notes, 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 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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.
Page 8
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AIRSCREAM UK LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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.
Page 9
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AIRSCREAM UK LIMITED (CONTINUED)
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 Auditors' 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:
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following: • We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS 101 and the Companies Act 2006. • We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making enquiries of management. • We challenged assumptions and judgments made by management in its significant accounting estimates; We did not identify any key audit matters relating to irregularities, including fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
Page 10
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AIRSCREAM UK LIMITED (CONTINUED)
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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants and Statutory Auditors
101 New Cavendish Street
1st Floor South
W1W 6XH
Page 11
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 12
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
REGISTERED NUMBER: 11368960
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
Page 13
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
REGISTERED NUMBER: 11368960
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 35 form part of these financial statements.
Page 14
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 15
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
AIRSCREAM UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ashville Park, Short Way, Thornbury, Bristol, BS35 3UU.
2.Accounting policies
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
This information is included in the consolidated financial statements of AIRSCREAM 313 Holdings Limited as at 31 December 2024 and these financial statements may be obtained from Companies House.
The company meets its day-to-day working capital requirements through its cash reserves. The current economic conditions continue to create uncertainty and the company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current cash reserves. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
There are no amendments to accounting standards, or IFRIC interpretations that are effective for the year ended 31 December 2024 that have a material impact on the company’s financial statements.
Page 16
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Page 17
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Page 18
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Page 19
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Page 20
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 21
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Page 22
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Fair value through profit or loss
Impairment of financial assets
Financial liabilities
At amortised cost
Page 23
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The following are the judgements made by management in applying the accounting policies of the Company that have the most significant effect on these financial statements: Recognition of deferred tax assets The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry-forwards can be utilised. In addition, significant judgement is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions. Useful lives and residual values of depreciable assets Management reviews its estimate of the useful lives and residual values of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change the utility of certain software and IT equipment and environmental regulations that can make polluting assets to be depreciated more quickly. Inventories Management estimates the net realisable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realisation of these inventories may be effected by future technology or other market-driven changes that may reduce future selling prices. Leases – determination of the appropriate discount rate to measure lease liabilities The Company enters into leases with third-party landlords and as a consequence the rate implicit in the lease is not readily determinable. The Company uses its incremental borrowing rate as the discount rate for determining its lease liabilities at the lease commencement date. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow over similar terms which requires estimations when no observable rates are available.
Page 24
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Analysis of turnover by country of destination:
Page 25
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 26
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 27
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 28
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
AIRSCREAM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Taxation (continued)
There were no factors that may affect future tax charges.
Page 29
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||