|
Registered number: 07186841
STS AVIATION SERVICES UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
STS AVIATION SERVICES UK LIMITED
COMPANY INFORMATION
|
|
I Bartholomew (resigned 6 May 2025)
|
|
|
|
|
|
|
|
|
|
|
|
I Day (resigned 8 October 2024)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chartered Accountants & Statutory Auditor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STS AVIATION SERVICES UK LIMITED
CONTENTS
|
|
|
|
|
|
|
|
|
Independent Auditors' Report
|
|
Statement of Comprehensive Income
|
|
Statement of Financial Position
|
|
Statement of Changes in Equity
|
|
Notes to the Financial Statements
|
|
|
|
STS AVIATION SERVICES UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
STS Aviation Services UK Limited is part of the US based, STS Aviation Group founded in 1984.
The STS Aviation Group consists of three global business segments:
1. Material Services: Focused on the sale of new and used materials to the aviation market through an extensive global distribution network including the manufacture, assembly and kitting of specialised aerospace components
2. Maintenance, Engineering & Modification Services: Focused on delivering flightline maintenance and engineering services in support of domestic and international airlines. We offer on-call, through-flight meet & greets, RON maintenance and AOG response teams. In addition, we specialise in major aircraft modification and reconfiguration services at our aircraft hangar that's supported by mobile, fleet modification teams deployed globally.
3. Staffing Services: Focuses on creating, customizing and executing end-to-end workforce management solutions, MRO (Maintenance, Repair & Overhaul) and MSP (Managed Service Provider) programs for businesses across the aviation / aerospace and defense industries, including in-house needs.
In 2024 STS Aviation Services UK Limited continued to execute its strategy for targeted growth within its primary sectors, Civil, Defense and large modification and conversions, securing long-term contracts and higher margin ad-hoc volumes.
This strategy has proved successful with a number of key long term contracts being secured across all its main locations in the UK. STS continued to provide maintenance services for a leading UK leisure airline, who offer both scheduled and charter flights. STS has also continued to increase volumes with other existing customers and attracted new volume with a number of airlines based in mainland Europe and North America and Canada.
The Civil business unit delivered increased volumes in 2024 compared to 2023. Birmingham delivered similar revenue to the previous year as the facility was near full capacity, both Manchester and Newquay increased volume and revenue compared to 2023. The growth in Manchester was significant as STS increased the volume of B777 passenger to freighter conversion work and services. Recruitment of highly skilled engineers was carefully aligned to the ramp up in activity during the year. The last quarter of 2024 had all three Civil sites at full capacity.
The Line Maintenance part of the business had a more challenging year regarding volumes compared to 2023, this was mainly due to reduced demand at STS’s primary line maintenance locations at both Birmingham and Manchester. The business will be seeking to add new UK based locations and add additional scope to reduce the reliance at these two locations.
For the Defense business 2024 was a year of transition, with the current military contract between STS and Boeing subject to a significant commercial restructure, resetting the agreement for the final phase through to completion. A key milestone was achieved in 2024 with the maiden flight of the UK’s first Boeing E7 aircraft. Overall, the changes made in 2024 will now enable STS to further develop its defense business and good progress has been made to secure additional volume and position STS as a key provider of defense solutions to meet the ever growing demand.
Looking forward to 2025, STS will commence a company-wide review regarding key activities by location, aligned to future demand. Both Civil and Defense will establish centers of excellence for each key activity. Once again, STS will make significant capital investment and focus on talent acquisition, including senior level appointments.
|
|
STS AVIATION SERVICES UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Business review (continued)
As for the colleagues, a number of initiatives will be rolled out in 2025 with key employee retention an ongoing focus. A new employee engagement survey will be conducted in the second quarter of 2025 and further employee engagement programs will be implemented. STS will be increasing its in-house talent acquisition team utilising skills from across the STS Group. This will allow the HR team to focus on making improvements to employee development and welfare and working with management to help manage the increasing teams more effectively.
Notwithstanding the challenges faced in 2024 and the adjustments made to key commercial contract arrangements, STS had a strong year of operational performance and is well placed for the future even with the ongoing unrest in Eastern Europe and the Middle East and global political turmoil.
Principal risks and uncertainties
|
A key consideration for the Group is the general economic climate, attraction of skilled labour, increasing costs, such as energy and costs of employment, Global conflict, staff retention and global economic stability.
Financial key performance indicators
|
The Directors are satisfied with the results for the period. Sales revenues amounted to £44,191,406 and £59,595,763 the prior year. Operating loss amounted to £20,761,223 (2023: profit £4,093,789).
No interim dividend was paid during the year (2023: £Nil). The directors do not recommend the payment of a final dividend in respect of the current period.
Other key performance indicators
|
The Company is subject to various KPI’s and targets around service levels and delivery which are monitored closely and allow the Company to maintain the quality of its customer relationships.
Directors’ statement of compliance with duty to promote the success of the company
|
S172(1) (A) “The likely consequences of any decision on the long term”
The Directors understand the business and the evolving environment in which we operate, including the challenges of navigating through the aviation industry regulating environment. The strategy of the Board is intended to strengthen our position as one of the leading independent MRO’s and to ensure that we achieve future growth by expanding in to additional service lines including passenger to freight conversions.
S172(1) (B) “ The interests of the company’s employees”
The Directors recognise that the Company’s employees are fundamental and core to our business and delivery of our strategic ambitions. The success of our business depends on attracting, retaining and motivating employees. From ensuring that we remain a responsible employer, from pay and benefits to our health, safety and workplace environment, the Directors factor the implications of decisions on employees and the wider workforce, where relevant and feasible.
|
|
STS AVIATION SERVICES UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Directors’ statement of compliance with duty to promote the success of the company (continued)
S172(1) (C) “The need to foster the company’s business relationships”
Delivering our strategy requires strong mutually beneficial relationships with suppliers and customers. The Company seeks the promotion and application of certain general principles in such relationships. When deciding whether to conduct business with such partners, the company carefully considers the nature of the relationship, our ability to meet our obligations and the standards and behaviour that should apply.
The Company seeks to operate with suppliers that meet certain commercial and ethical standards. As an AS9110 approved business all suppliers are subject to an evaluation and approval process.
S172(1) (D) “The impact of the company’s operations on the community and the environment”
Environmental, social and corporate governance (ESG) is extremely important to the Company. The Company has an ESG agenda, which includes environmental, societal and workforce engagement performance indicators.
This report was approved by the board and signed on its behalf.
|
|
STS AVIATION SERVICES 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.
Directors' responsibilities statement
|
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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The 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 to 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.
The loss for the year, after taxation, amounted to £16,432,208 (2023: profit £3,004,647).
The directors did not recommend the payment of a dividend in the year (2023: £Nil).
The directors who served during the year were:
I Bartholomew (resigned 6 May 2025)
|
|
|
|
|
|
|
I Day (resigned 8 October 2024)
|
|
|
STS AVIATION SERVICES UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Economic impacts of global events
|
UK Businesses continue to face many uncertainties such as the consequences of economic uncertainty and geopolitical events. These uncertainties have contributed to an environment where there exists a range of issues and risks, including tariffs, labour shortages, disrupted supply chains and new ways of workings.
The Directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic effects on the global economy. The Directors have taken account of these potential impacts in their going concern assessment.
The Company continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.
Engagement with employees
|
The Directors support the participation of employees in the activities of the group, encourage employees to become involved in the pursuit of safety, efficiency and high performance, and provide employees with regular communication on the groups plans, performance and figures. A new employee engagement survey will be conducted in the second quarter of 2025 and further employee engagement programs will be implemented.
The group gives full consideration to applications from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person.
Where employees become disabled, it is the groups policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees where appropriate.
Qualifying third party indemnity provisions
|
The ultimate parent undertaking has arranged a third party indemnity policy for the directors.
Streamlined Energy and Carbon Reporting
|
STS Aviation Services falls under the scope of the UK Streamlined Energy and Carbon Reporting (SECR) framework. Emissions reported here comply with the Department for Business, Energy and Industrial Strategy (BEIS) The Companies (Directors Report) and Limited Liability Partnerships (Energy and Carbon Reporting) Regulations 2018.
|
|
|
|
Energy consumption used to calculate emissions: /kWh
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emissions from combustion of gas (Scope 1)/tCO2e
|
|
|
Emissions from combustion of fuel for transport purposes (Scope 1)/tCO2e
|
|
|
Emissions from combustion of electricity (Scope 2)/tCO2e
|
|
|
Emissions from business travel in rental cars or employee owned vehicles where company is responsible for purchasing the fuel (Scope 3)/tCO2e
|
|
|
|
|
|
|
Intensity ratio: tCO2e (gross) per £1,000 turnover
|
|
|
|
|
STS AVIATION SERVICES UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have used the CHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government’s Conversion Factors for Company Reporting.
Intensity Measurement
The chosen intensity measurement ratio is total gross emissions in tonnes of CO2e per £1,000 turnover.
Our Journey to Net Zero
STS Aviation Services UK Limited is committed to reaching Net Zero before 2040.
In doing so STS Aviation is continuing to pursue a range of methods to reduce direct and indirect emissions including a target of 50% of the fleet will be electric/hybrid, LED lighting and other energy efficiency measures along with reviews of the viability of solar power across the hangar facilities.
The financial statements have been prepared on a going concern basis. The Board has prepared detailed forecasts for a period of twelve-months post the signing of these financial statements, adjusting key assumptions and also incorporating significant contracts the company has secured.
The Board have concluded that, after due consideration, there is a reasonable expectation that the company has adequate resources to continue for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing these financial statements.
Matters covered in the Strategic Report
|
In preparing the Directors' Report, the directors have complied with S414C (11) of the Companies Act 2006 by including certain disclosures required by S416(4) within the business review of the Strategic Report.
Disclosure of information to auditors
|
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a directors in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
|
There have been no significant events affecting the Company since the year end.
The auditors, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
|
|
STS AVIATION SERVICES UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board and signed on its behalf.
|
|
STS AVIATION SERVICES UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STS AVIATION SERVICES UK LIMITED
Opinion
We have audited the financial statements of STS Aviation Services UK Limited (the ‘Company’) for the year ended 31 December 2024 which comprise the Profit and Loss Account, the Statement of Financial Position, the Statement of Changes in Equity and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
∙give a true and fair view of the state of the Company’s affairs as at 31 December 2024 and of its loss for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
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 Strategic Report and the Directors' Report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the Strategic Report and the Directors' 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.
|
|
STS AVIATION SERVICES UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STS AVIATION SERVICES UK LIMITED
Other information (continued)
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In 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:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Directors’ Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the 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.
|
|
STS AVIATION SERVICES UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STS AVIATION SERVICES UK LIMITED
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 the financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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.
Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
|
|
STS AVIATION SERVICES UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STS AVIATION SERVICES UK LIMITED
Auditor's responsibilities for the audit of the financial statements (continued)
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 auditor’s report.
Use of the audit 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 Kurowski (Senior Statutory Auditor)
for and on behalf of
Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
2 Chamberlain Square
Birmingham
B3 3AX
1 September 2025
|
|
STS AVIATION SERVICES UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest receivable and similar income
|
|
|
|
Interest payable and similar expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit for the financial year
|
|
|
|
There was no other comprehensive income for 2024 (2023: £Nil).
|
The notes on pages 15 to 31 form part of these financial statements.
|
|
|
STS AVIATION SERVICES UK LIMITED
REGISTERED NUMBER: 07186841
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
Net current (liabilities)/assets
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
Provisions for liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 31 form part of these financial statements.
|
|
STS AVIATION SERVICES UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 15 to 31 form part of these financial statements.
|
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
STS Aviation Services UK Limited is a private company limited by shares and incorporated in England and Wales, registered number 07186841. Its registered office is located at Hangar 5 Airport Cargo, Birmingham Airport, Birmingham, B26 3QN.
2.Accounting policies
|
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The presentational currency of the financial statements is sterling which is the functional currrency of the Company and the financial statements are rounded to the nearest £. The financial information of the current period relates to the year ended 31 December 2024 and the comparative information relates to the year ended 31 December 2023.
The following principal accounting policies have been applied:
|
|
|
Financial Reporting Standard 102 - reduced disclosure exemptions
|
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A.
This information is included in the consolidated financial statements of STS Aviation Europe Limited as at 31 December 2024 and these financial statements may be obtained from Companies House.
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis. The Board has prepared detailed cash flow forecasts for a period of twelve-months post the signing of these financial statements, adjusting key assumptions and also incorporating significant contracts the company has secured.
The budgets have been sensitised for a range of material downside scenarios and stress tested to allow the Board to assess the impact of these scenarios on liquidity. The base case cash flow forecast projects that the business will continue as a going concern as a result of the significant contracts secured which provide sufficient cash headroom to allow the company to continue to meet its liabilities as they fall due.
The Board have concluded that, after due consideration, there is a reasonable expectation that the company has adequate resources to continue for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing these financial statements.
|
|
|
Foreign currency translation
|
Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'administrative expenses'.
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Turnover comprises revenue recognised by the Company in respect of Aircraft Line and Base Maintenance support, Worldwide AOG and Manpower solution services supplied during the year, exclusive of Value Added Tax.
Turnover is recognised when the goods or services have been provided to the customer.
Turnover also includes revenue recognised on long term contracts in respect of aircraft conversion work. Turnover in respect of contract services represents the fair value of services provided as a proportion of the total value of the contract, which reflects the time spent and the skills and expertise that have been provided. The proportion of the total value of the contract is assessed using actual man hours spent on the contract at the year end as a percentage of total anticipated man hours over the term of the contract.
Payments received on account in excess of turnover recognised is recognised as deferred income. Contract set up and planning costs incurred are prepaid and recognised over the life of the contract.
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. Provision is made for any losses as soon as they are foreseen.
Other income represents research & development expenditure credit.
|
|
|
Operating leases: the Company as lessee
|
Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured.
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.
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Finance costs are charged to the Statement of Comprehensive Income once the Company becomes liable to interest charges on the accruals basis.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
Termination benefits, including redundancy payments, are recognised as an expense in the Statement of Comprehensive Income when an entity is committed to a termination plan.
|
|
|
Current and deferred taxation
|
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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:
|
|
|
|
|
Long-term leasehold property
|
|
Over the period of the lease
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 the Statement of Comprehensive Income.
Stocks represent materials that the Company holds and is stated at cost.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.
Short-term debtors are measured at transaction price, less any impairment.
|
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
|
|
|
Provisions for liabilities
|
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to the Statement of Comprehensive Income.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Comprehensive Income.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the Statement of Comprehensive Income.
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
|
|
|
Financial instruments (continued)
|
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
|
|
Judgements in applying accounting policies and key sources of estimation uncertainty
|
Preparation of the financial statements in conformity with generally accepted accounting policies requires the directors to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results in the future could differ from those estimates. In this regard, the directors believe that the critical accounting policies where judgements or estimates are necessarily applied are summarised below:
Estimation uncertainty
The useful economic lives of tangible fixed assets.
The doubtful debt provision in respect of trade debtors that are considered to be irrecoverable.
Revenue recognised on long term contracts. The revenue is recognised as a proportion of the total value of the contract reflecting the time spent and the skills and expertise that have been provided. The proportion of the total value of the contract is assessed using actual man hours spent on the contract at the year end as a percentage of the total anticipated man hours over the term of the contract. The directors have assessed the total anticipated man hours and believe them to be in line with the budget set at the outset.
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
An analysis of turnover by class of business is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service, maintenance and repair of aircraft
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All turnover arose within the United Kingdom.
|
|
|
Research & development expenditure credit
|
|
|
|
|
Miscellaneous other income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The operating (loss)/profit is stated after charging:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of tangible fixed assets
|
|
|
|
|
|
|
|
|
|
Other operating lease rentals
|
|
|
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
During the year, the Company obtained the following services from the Company's auditors and their associates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
|
|
|
|
|
Fees payable to the Company's auditors and their associates in respect of:
|
|
|
|
|
Taxation compliance services
|
|
|
|
|
|
|
|
|
|
|
|
|
Staff costs, including directors' remuneration, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of defined contribution scheme
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The average monthly number of employees, including the directors, during the year was as follows:
|
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
|
|
Company contributions to defined contribution pension schemes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the year retirement benefits were accruing to 3 directors (2023 - 4) in respect of defined contribution pension schemes.
|
|
|
The highest paid director received remuneration of £502,924 (2023 - £245,359).
|
|
|
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £15,248 (2023 - £Nil).
|
|
|
Interest payable and similar expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
|
|
Current tax on profits for the year
|
|
|
|
|
Adjustments in respect of previous periods
|
|
|
|
|
|
|
|
|
|
Foreign tax in respect of prior periods
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination and reversal of timing differences
|
|
|
|
|
Adjustments in respect of prior year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation on (loss)/profit on ordinary activities
|
|
|
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Taxation (continued)
|
|
Factors affecting tax charge for the year
|
|
|
The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of25% (2023 - 23.52%). The differences are explained below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit on ordinary activities before tax
|
|
|
|
|
(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses not deductible for tax purposes
|
|
|
|
|
Income not taxable for tax purposes
|
|
|
|
|
|
|
|
|
|
Adjustments to tax charge in respect of prior periods - current tax
|
|
|
|
|
Adjustments to tax charge in respect of prior periods - deferred tax
|
|
|
|
|
Remeasurement of deferred tax for changes in tax rates
|
|
|
|
|
|
|
|
|
|
Other differences leading to an increase (decrease) in the tax charge
|
|
|
|
|
Group relief surrended/(claimed)
|
|
|
|
|
|
|
|
|
|
Total tax charge for the year
|
|
|
|
|
Factors that may affect future tax charges
|
There were no factors that may affect future tax charges.
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
Long-term leasehold property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw materials and consumables
|
|
|
|
|
Work in progress (goods to be sold)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There are no debtors falling due after more than one year (2023: £Nil).
Amounts owed by group undertakings are unsecured, interest-free, have no fixed date of repayment and are repayable on demand.
Trade debtors are stated net of a provision of £Nil (2023: £76,105).
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings are unsecured, interest-free, have no fixed date of repayment and are repayable on demand.
|
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
|
|
Financial assets that are debt instruments measured at amortised cost
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at amortised cost
|
|
|
|
|
Financial assets that are debt instruments measured at amortised cost comprise cash at bank and in hand, trade debtors, amounts owed by group undertakings and other debtors.
|
|
|
Financial liabilities measured at amortised cost comprise trade creditors, amounts owed to group undertakings, other creditors and accruals and deferred income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credited to the Statement of Comprehensive Income
|
|
|
|
|
|
|
The deferred taxation balance is made up as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed asset timing differences
|
|
|
|
|
Short term timing differences
|
|
|
|
|
Losses and other deductions
|
|
|
|
|
|
|
|
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
Credited to the Statement of Comprehensive Income
|
|
|
|
|
|
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
|
|
1,005 (2023: 1,005) Ordinary shares of £1.00 each
|
|
|
|
|
There is a single class of ordinary shares. There are no restrictions on dividends and the repayment of capital.
|
Capital Contributions
Includes a contribution to the equity capital of the Company by its immediate parent undertaking which has not been made in exchange for share capital.
Profit and loss account
Includes all current and prior periods retained profits and losses.
|
|
Fixed and Floating Charges
|
At 31 December 2024 there is an unlimited guarantee between the Company and STS Aviation Europe Limited, GTES Holdings Limited, GT Engine Services Limited, Apple Aviation Global Limited and MEM Business, LLC in respect of a loan with Blue Owl Capital Corporation.
The instrument creates a fixed charge over material intellectual property and a fixed charge over material real property. The floating charge covers all the property or undertaking of the Company.
At 31 December 2024 the Company had capital commitments outstanding of £272,852 (2023: £Nil) in relation to plant and machinery additions.
|
|
STS AVIATION SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £744,054 (2023: £800,985). Contributions totalling £147,960 (2023: £145,201) were payable to the fund at the reporting date and are included in creditors.
|
|
Commitments under operating leases
|
|
|
At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Later than 1 year and not later than 5 years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related party transactions
|
|
|
The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with fellow group undertakings.
The individuals that are considered by the Company to be key management personnel have received remuneration totalling £1,084,509 (2023: £980,745).
|
STS Aviation Services Europe Limited is the Company's immediate parent undertaking. STS Aviation Services Europe Limited is incorporated in England and Wales. STS Aviation Europe Limited prepares consolidated financial statements which includes this company and are available from Companies House.
The ultimate parent undertaking is STS Aggregator L.P which does not prepare consolidated accounts. The largest undertaking for which group accounts are prepared is STS Parent LLC, a limited liability company registered in the US.
|
|
|